Mirvac eyes Google for lease

Commercial Campaign launched for $200m Australian Technology Park-Key points

• The Australian Technology Park stretches across 14 hectares in Eveleigh.
• The site was put up for sale in the state government's property divestment plan.

Mirvac Group is gunning hard to take home the prized $200 million-plus Australian Technology Park in inner Sydney. Behind the push is Mirvac's determination to land a major tenant, such as Google or Commonwealth Bank of Australia, for the site, industry sources said.

Home to leading Australian and global technology, communications and science companies, the ATP stretches across 14 hectares on the CBD's fringe in Eveleigh. The site was put up for sale late last year as part of the state government's multimillion property divestment plan and includes four  existing office buildings, vacant land, commercial spaces and conference facilities.

UrbanGrowth launched the Australian Technology Park campaign on December 4 with the expressions of interest campaign aimed at determining a fair price. However, it is believed Mirvac had approached the state government to discuss its potential prior to it being put on the market.

Mirvac declined to comment when contacted. Knight Frank's Richard Home, James Parry and Neil Brookes, who are marketing the 100 per cent­freehold interest in ATP, also declined to comment. First-round expressions of interest close January 30.

One of the key attractions is the three development plots that allow commercial and mixed use buildings up to 11 storeys.  The total potential gross floor area is 102,450 square metres.

The ATP has drawn the interest of a number of other parties. However, Mirvac is believed to be a frontrunner. But the eventual purchaser would likely want to have the process wrapped up quickly to negotiate with tenants.

Google and CBA are currently some of the most sought-after companies in the Sydney office market. Both are reviewing their leasing situations.

CBA, currently located at Homebush, is looking for about 100,000 square metres of campus accommodation in the suburbs.

Another challenger to house the big bank is the new Parramatta Square project.  A  Charter Hall Group and Leighton Properties joint venture and Walker Corporation are the final two contenders to build the two office towers and an apartment complex at the Parramatta site. Final bids are due in February. The office towers will comprise 100,000 square metres and has long been considered one of the most logical places for CBA to relocate to, should it choose to move.

Meanwhile, Google is also in the market for 45,000 to 60,000 square metres of office space. The Australian Technology Park has long been on the company's shortlist, given the lack of available space in the CBD.

Source: Australian Financial Review Thursday 22 January 2015 p 31