Dexus (ASX:DXS) to fund Atlassian development for $1.4 billion

Company News

by Lauren Evans

Australian real estate company Dexus (ASX:DXS), has announced that it has entered into binding terms which provide a framework to fund, develop and invest in Atlassian’s new headquarters in Sydney, located adjacent to the Central Place Sydney development, and within the State Government-led tech central precinct.

Atlassian is a software development company. The project will span 75,088 square metres of gross floor area, and will comprise a market-leading sustainable 40-level office tower with retail amenities and new youth space accommodation at its base, as well as a new public area around Central Station. Atlassian will take a 15-year lease with the tenancy.

As part of the arrangements, Dexus will act as development manager and take responsibility for delivering the project, fund 100 per cent of the project costs during construction, and retain a long-term equity interest in the asset with Atlassian. The total project costs are expected to be $1.4 billion.

The agreement is subject to a number of conditions, including planning and other government approvals, which are expected to be satisfied by December 2021, with construction expected to commence in early 2022 and reach completion in early 2026.

Dexus CEO, Darren Steinberg said: "The Atlassian tower is a great example of the future of workplace and is aligned with our purpose of creating spaces where people thrive. We look forward to welcoming Atlassian as a new customer and co-owner onto our platform and building out our developments within the Tech Central precinct."

Shares in Dexus (ASX:DXS) are trading 0.4 per cent lower at $10.20. 

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