Dexus signs on to develop $1.4bn Atlassian office tower

Dexus has agreed to fund and develop a $1.4 billion 40-level tower in central Sydney that will house the headquarters of software maker Atlassian.

The listed real estate investment trust (REIT) said yesterday it had “entered into binding terms, which provide a framework to fund, develop and invest in Atlassian’s new headquarters in Sydney.”

The building is a major part of an innovation and technology precinct being developed by the NSW government adjacent to Central Station.

The “hybrid timber” office tower at 8-10 Lee Street will be home to Atlassian for at least 15 years.

Assuming planning and government approval, construction is expected to start “in early 2022 and reach completion in early 2026,” Dexus said.

“Dexus will act as development manager and take responsibility for delivering the project, fund 100 percent of the project costs during construction, and retain a long-term equity interest in the asset with Atlassian,” the REIT said.

“The total project costs are expected to be $1.4 billion.”

Dexus said it will fund the costs of the development “through debt facilities and may also look to introduce third party capital into the project prior to completion.”

The building is anticipated to be very energy efficient and designed in four-storey sections called ‘habitats’ that will “have naturally ventilated areas throughout.”

“The Atlassian tower is a great example of the future of the workplace and is aligned with our purpose of creating spaces where people thrive,” Dexus CEO Darren Steinberg said in a statement.

“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.”