Charter Hall closes 10-year lease deal with Ericsson at 555 Collins Street

Charter Hall Group (Charter Hall or the Group) announced that it has secured a major 10-year pre-commitment lease with global technology firm, Ericsson, at its $1.5 billion state-of-the-art precinct at 555 Collins Street in Melbourne. Ericsson joins Amazon, Aware Super, Allianz Australia, and Connective at 555 Collins Street, which reached practical completion in June. Now over 70% pre-committed, only the top five sky-rise floors of the building remain.

What is the market offering of the locale?

Securing 3,350 square metres (sqm) of premium office space across nearly three floors, Ericsson will relocate its Melbourne office from Docklands to Melbourne’s burgeoning Midtown. Charter Hall’s 555 Collins Street is strategically positioned on one of the city’s key intersections with close proximity to the Southern Cross train station, tram routes, and major arterial road network, as well as ample food, retail and entertainment options.

A joint venture between Charter Hall Prime Office Fund (CPOF) and Singapore’s sovereign wealth fund, GIC, 555 Collins has been designed to provide tenant customers with a premium workplace experience. The tech-enabled, mixed-use destination boasts touchless access, skyline terraces, premium amenity and a focus on wellness and sustainability.

The precinct is targeting a Platinum WELL Rating (Shell and Core), 6 star Green Star As-Built and Design rating, 6 star NABERS Waste rating, 5 star NABERS Energy rating, 4 star NABERS Water rating, and 5 star NABERS Indoor Environment rating. It will also be home to Charter Hall’s first premium coworking space managed by Hub Australia, aka 555 Collins Exchange.

The scalable partnership with Hub will further enhance the amenity for tenant customers through bookable flex spaces and concierge services. The premium grade multi-function spaces include a business hub, boardrooms, meeting rooms, and project space, all equipped with the latest tech, and a large function space that can be configured in a number of ways.

What does the partnership mean for stake holders?

Emilio Romeo, Head of Ericsson, ANZ
Emilio Romeo, Head of Ericsson, ANZ

Commenting on the locale, Emilio Romeo, Head of Ericsson Australia and New Zealand said, “Our decision to relocate our people to 555 Collins Street reflects our commitment to our Environmental, Social and Corporate Governance objectives as well as providing our people and future talent with a workplace that will inspire innovation, collaboration and productivity.”

“This strategic move will help unlock an enhanced workplace experience for our people thanks to the ample amenities within the building and in the surrounding area, as well as our ability to make further progress on our sustainability goals,” Emilio Romeo further added.

Charter Hall Office CEO, Carmel Hourigan, said, “We are pleased to partner with Ericsson to deliver a workplace that meets the needs of its people and its business. 555 Collins Street embodies a tenant-centric approach in its design and responds to the evolving way that Aussies work and live, and our new partnership with Hub is a reflection of how we partner with best-in-class experts to deliver exceptional experiences for our tenant customers.”

“Ericsson’s pre-commitment further bolsters the high-quality tenant covenant at 555 Collins Street, which is now over 70% leased ahead of its doors opening for occupants later this year. Our conviction on the demand for high-quality office stock with best-in-class amenity, location and sustainability features remains strong and is further reinforced by the strong interest in our developments across Australia, including 360 Queen Street and Chifley South.”

Fitouts are underway, with occupants expected to move in as soon as October 2023. Charter Hall was represented by JLL & Colliers and Ericsson by Cushman & Wakefield.