Dexus secures Herbert Smith Freehills for 80 Collins precinct

Dexus secures Herbert Smith Freehills for 80 Collins precinct

25 October 2019

Dexus has secured Herbert Smith Freehills as its newest customer at the South Tower of its 80 Collins Street precinct.

The 80 Collins Street precinct comprises a new 35 level premium office tower (South Tower) which HSF has committed to, as well as an existing 47 level A-grade office tower (North Tower), a new retail podium with 21 tenancies and a new 255 room boutique hotel.

The precinct is owned by Dexus and Dexus Wholesale Property Fund and was acquired in May 2019 from Queensland funds giant QIC.

HSF has agreed terms to take a 12-year lease commencing on 1 July 2021 across circa 10,300 square metres comprising eight floors (levels 21-28). HSF joins other premium tenants including Macquarie Bank, McKinsey & Company and DLA Piper.

The net face rent is expected to be some way above $850 per sq m, according to market sources.

This lease increases the South Tower commitment level from 63% to 89%, with significant interest on the remaining space. The North Tower is currently 99.4% occupied with ongoing discussions progressing in relation to the space requirements of existing customers coming up for expiry.

Head of Office Leasing, Chris Hynes said: “We are delighted to welcome Herbert Smith Freehills as the latest customer to commit to this exciting precinct, providing them with the opportunity to implement a new workspace in Melbourne’s newest premium office building.

“The 80 Collins precinct offers a premium location at the Paris end of Collins Street – where our customers want to be.”

Herbert Smith Freehills’ Melbourne Managing Partner, Rodd Levy said: “We are excited to be moving to a state-of-the-art building, which will support our plans and aspirations for our staff and clients. We believe that 80 Collins Street will enable us to promote greater collaboration and innovation. All of this aligns with our vision to be a world class professional services firm.”

The development of the South Tower is expected to complete in mid 2020 and the project topped out in August 2019.

HSF’s move comes as top-tier law firms battle to recruit and retain talented corporate lawyers, with workplace comforts rated high on the list by their hard-working employees, reports The AFR.