16 Sep 2014

Viva Energy joins drift into Docklands

Super fund developer Cbus Property has signed up Viva Energy for a 4,400-square-metre lease at its newly built Docklands office tower in Melbourne.

Viva, formerly known as Shell Australia, is moving from its Hawthorn headquarters to take up one and a half floors at 720 Bourke Street, which is anchored by Medibank.

The energy company joins a flurry of suburban tenants who have taken advantage of central business district incentives hovering around 30 percent.

Colliers International’s Andrew Beasley, who handled the deal with colleague Ben Christie, said the migration of suburban tenants had become an important factor in CBD leasing.

“Viva was attracted to the central location, easy access to the freeway, the proximity to public transport and the quality of the building,” Mr Beasley said of the deal.

Cbus Property kicked off development of the 47,000 square metre building in 2010 after signing on Medibank to 30,000 square metres.

Mr Christie said several parties were negotiating on the remaining 12,500 square metres.

The new tower overlooks the Docklands stadium, next to another 63,000 square metre tower, occupied by the National Australia Bank.

Cbus has just sold the NAB tower to AMP Capital for $433.5 million on a 5.75 per cent yield.  That deal was part of a larger $1 billion divestment by Cbus as it recycles profit into its burgeoning pipeline and hunts new opportunities.

Nearby, in the Docklands area, Malaysian investor CIMB-Trust Capital secured Lang Walker’s recently completed Australian Taxation Office building for $279 million on a 6.25 per cent yield last year.

CBRE’s Terry Dohnt represented Viva Energy.

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