Business & Finance

Victoria Harbour Commercial Development Underway

June 28th, 2001

National Australia Bank ("the National") today nominated the Lend Lease Group ("Lend Lease") as preferred developer for the National's new generation office complex, at Victoria Harbour, the centre-piece precinct of the Melbourne Docklands.

The Lend Lease Group proposal included a totally integrated real estate solution for the $200m plus, 56,000 square metre project involving provision of development, design, construction and project finance services as well as proposed long term ownership of the asset by a major property fund managed by Lend Lease.

Mr Desmond Marks, CEO of Lend Lease Development said the National's selection of Lend Lease confirmed Melbourne CBD tenant acceptance of Victoria Harbour as the natural extension of the CBD.

"We are delighted to have the opportunity to secure the National as the first key commercial tenant for the precinct that is to become the commercial heart of Docklands," Mr Marks said.

"The National's decision to relocate its 4000 staff members to the emerging CBD waterfront at Victoria Harbour is part of a much broader corporate change program that focuses on achieving a greater degree of equity and communication between staff members at all levels and divisions, as well as increased operational efficiency.

"Because Victoria Harbour will incorporate extensions of both Collins and Bourke Streets, the National and other major space users who have already expressed strong interest in the precinct, will gain all these advantages not possible in a conventional CBD office tower, while still enjoying a CBD location.

Lend Lease and the National will commence work immediately on finalising the design and development agreement. Construction of the first building is scheduled to commence by October this year. The first National staff members are due to move in by mid 2003. The second building is scheduled for completion by mid 2004. Under the Lend Lease proposal, the National has also secured an option for further space to be exercised by late 2004.

In addition to the office complex construction, Lend Lease will simultaneously complete the first stages of the Bourke Street extension, pedestrian link to Spencer Street Station, initial retail and café / bar facilities as well as the waterfront and Grand Plaza which the National buildings front.

"Our plan is staged so that tenants move into "live" precincts with operating shops, cafés and public spaces to enjoy," Mr Marks said.

"We have commercial expressions of interest in Victoria Harbour which exceed available office space under the master plan and have already received hundreds of residential enquiries even though we have not yet started marketing residential sites," Mr Marks said.

"There is a strong momentum towards Docklands and Victoria Harbour from all real estate sectors.

"We are very pleased to be playing a role in giving Melbourne's original port and waterfront back to the city," Mr Marks said.