Caltex moving to western corridor

Author: Carolyn Cummins
Date: 29/03/2006
Publication: Sydney Morning Herald
Section: Business News

AS EVIDENCE of the improvement in the Sydney office market, two leasing deals were signed yesterday - one in the CBD and another at Sydney Olympic Park.
The largest was at Macquarie Office Trust's 2 Market Street, on the corner of Sussex Street, which was snapped up by Caltex with a 10-year lease over 9200 square metres.
Caltex will relocate its head office towards the end of the year, leasing five high-rise floors.
The deal was expected but signals the continued demand for the area deemed the western corridor of the CBD.
It is understood the rents were competitive for this area, which are about $600/sqm gross with a market rate incentives level of about 20 per cent.
Macquarie Office Fund co-owns the building with Allianz.
Macquarie Office chief executive Simon Jones said the new lease was another great example of how the trust's asset enhancement strategy attracted high-calibre customers.
The fund's chief investment officer, Adrian Taylor, said there was high demand by staff and tenants for properties that offered a good food court, large floor space, 24-hour security and were environmentally friendly.
There will also be a Fitness First gym taking up space in the Market Street building.
Caltex managing director Dave Reeves said the company saw its head office relocation as an opportunity to improve its workplace environment by moving to a newly refurbished building that supported advanced technology such as voice over internet protocol telecommunications.
Away from the CBD at Sydney Olympic Park, Rail Corporation NSW has signed a three-year plus three-year lease for 4200sqm office-warehouse complex at 6 Herb Elliott Avenue from the owner of the site, Sydney property syndicator Century Funds Management.
The new lease kicks off next Friday on a net rental of about $265/sqm a year for the two-storey office component and $120/sqm a year for the warehouse accommodation.
The property is one of three high-technology industrial properties owned by Century's Century Bankminster subsidiary and is immediately opposite the Commonwealth Bank's precommitted 22,000sqm office development.
Century Funds Management managing director John McBain said he was particularly confident about the growth prospects for Sydney Olympic Park.

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