Sydney, 29 September 2013 – Singapore-based Memocorp is continuing to roll out an upgrade program at its trophy 259 George Street tower in Sydney, with a significant lobby upgrade next in the pipeline following $15 million in preliminary building works.
Memocorp acquired the CBD building in late 2011 from Colonial's listed Commonwealth Property Office Fund.
The Suncorp Place building upgrades and the pending lobby redevelopment are being undertaken in a drive to secure new tenants and maintain the building’s presence as one of the leading prime grade office towers in the CBD core.
CBRE is steering the leasing campaign, which is focused on filling the space vacated last year by JP Morgan.
CBRE Senior Director, Office Services, Tim Molchanoff, said the works that Memocorp had committed to went above and beyond those that might necessarily have been undertaken by an institutional owner.
“The works show a commitment to the asset which would be unlikely for a REIT and certainly position the asset extremely well for a successful leasing campaign and long term future,” Mr Molchanoff said.
“While the relocation of JP Morgan drove the need for some upgrade works in order to maintain the building’s prime market position, Memocorp has taken this to the next level with its existing and future investment plans.”
Two brand new air-conditioning chillers and cooling towers have been installed to improve the building’s efficiency and NABERS rating, while variable speed drives have been installed to improve air quality throughout the building. A new domestic rooftop water tank has also been added to supplement the existing domestic water supply.
The building façade has meanwhile been enhanced with new external cladding and glazing to improve the thermal efficiency on each floor. Over 85% of the building’s façade window panels have been replaced/upgraded to provide higher UV blockage with reduced reflectance levels.
Other works include the development of three new shops in the existing food court which are now fully leased and operational to provide a greater variety of food options for tenants, whilst attracting additional foot traffic to the building.
Memocorp has more recently turned its attention to the ground floor lobby with a plan to enhance the lobby aesthetics by providing a double height lift lobby and open lobby areas. This will include new stone/Alucobond cladding to the walls, columns and stone floor finishes and a new set ceiling throughout.
Works have just commenced and will take approximately 9 to 12 months to complete.
Mr Molchanoff said the upgrade works had already generated tenant interest, with several suites in the building leased and interest gathering for both single and multiple floors. Circa 8,500sqm of office is available for lease.
“Finance, recruitment and resources tenants have shown particular interest in the building, which offers sweeping views, floor to ceiling windows, raised floors and benefits from its central CBD location,” Mr Molchanoff said.
“There have been very few opportunities within the sky rise of 259 George over the years and the private ownership of the building allows greater flexibility in structuring deals, which is helping to underpin tenant interest.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.