Iconic Cleveland Street Australia Post HQ to be redeveloped and sold

Iconic Cleveland Street Australia Post HQ to be redeveloped and sold

Australia Post today has announced a major redevelopment (pending council approval) of its iconic 219 – 241 Cleveland Street Headquarters in Strawberry Hills on the fringe of Sydney’s CBD. In conjunction with the extensive redevelopment of the building to create a modern and efficient corporate headquarters, Australia Post will commit to a 12 year head lease and market the property for sale.

On completion the building will provide over 29,000sqm of net lettable area, maintaining the Australia Post retail store with expanded services including 24/7 access and parcel lockers, and incorporating a gymnasium, cafe, function and conference facilities and car parking for 257 vehicles. Any surplus office areas will be offered for sub-lease.

The site has been home to Australia Post since 1965, originally as the Redfern Mail Exchange. The current building was constructed in 1970 and was last significantly upgraded and redeveloped in 1992.

Ewen Stafford, Australia Post’s Chief Operating Officer said, “This investment will help create a modern, efficient and sustainable building and an attractive investment for buyers and future tenants.

“Sydney is a vital centre for Australia Post’s operations and we remain committed to maintaining our presence in Cleveland Street and upgrading our facilities for customers and staff.

“In addition, we hope Cleveland Street will play a role in the local community as a great place to do business and encourage further investment and employment opportunities in the area”.

The works will include a substantial refurbishment of the existing building form and aesthetics. The main changes will be the construction of a new polished stainless steel and glass colonnade and atrium, over cladding of the precast panels, installation of high performance glazing and extensive modification of landscaping to improve accessibility to the building.

Upgrade of the building services will be extensive and will include all amenities areas, the building management systems, air-conditioning, the lifts and lighting, which will improve the current 2 star NABERs energy rating to a targeted 5 star rating. These works will commence from June 2013 and are anticipated to be completed in mid 2014.

Mr Jon Chomley, National Director of Capital Markets, at Colliers International has been appointed to sell the property. He said, “Completion of the building upgrade will provide an energy efficient and modern building with a high standard of amenity and internal finishes. We expect to receive strong interest from both onshore buyers and offshore parties. The long term lease to an AA covenant tenant, this close to the CBD, is a rare commodity and will appeal to a wide range of potential purchasers.”

Source: Australia Post Media Release of 7 March 2013