20 Mar 2012

One Bligh Street tower slowly fills with tenants

The vacant floors at Sydney’s One Bligh Street are slowly filling, with Oil Search leasing two levels at the flagship sustainable office tower.

The Australian Securities Exchange-listed resources company, which is Papua New Guinea’s biggest oil and gas producer, will occupy levels 22 and 23 of the building. 

The 3274 square metre lease starts on October 1 and runs for 12 years. 

One Bligh, completed last year, is owned by DEXUS Property Fund and Cbus Property. 

Law firm Clayton Utz is the tower’s anchor tenant and Ministerial and Parliamentary Services recently signed on for three floors. 

DEXUS said a further two floors were under offer, leaving three vacant high rise floors and a number of smaller part-floor tenancies. 

Financial media group Bloomberg, now a tenant at the Gateway Building at Sydney’s Circular Quay, has been linked to the pending two floor lease. 

The two new leases would take the tower’s occupancy level to 82 per cent, ahead of DEXUS’s target to be 80 per cent leased by June 30.

The new deals are understood to have been struck at higher incentives than previous deals. At its half-year results, DEXUS said its incentives across its portfolio had fallen from 20 per cent two years ago to 16 per cent, but were unlikely to fall further. 

DEXUS’s new managing director, Darren Steinberg, said the Sydney market, which has been adversely affected by white-collar job losses and economic uncertainty, was expected to improve next year. 
“Premium office properties such as One Bligh will further benefit from a recovery in business confidence and increased employment certainty,” he said. 

One Bligh has a six-star green star office design v2 rating and was designed to achieve a 5-star NABERs energy rating.
Cadigal Office Leasing and Jones Lang LaSalle represented the One Bligh Street owners and LPC was the tenant adviser to Oil Search.

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