Spotless heads to St Kilda Road in 10-year deal
Supporting Colliers International’s research prediction earlier this year that tenants would start decentralising from the CBD, The Spotless Group is set to relocate its international head office to St Kilda Road, Melbourne.
Taking the whole of 549 St Kilda Road on a 10-year lease, the move follows the departure of former owner-occupier Chartis Insurance in November 2010 after the sale of the property to Nikos Property Group.
The deal, negotiated by Colliers International’s office leasing director Ben Christie, will see Spotless relocate from 350 Queen Street in the CBD, which was built by property developer Warren Anderson and Japanese partners in 1990. It wasn’t until six years later that Spotless moved into the octagonal Queen Street building, taking 5000 square metres on levels two to five of the 20-storey building. The building had been empty six years.
Ryder Commercial’s website indicates it negotiated a recent Spotless lease at 350 Queen Street. It doesn’t give the date or space but indicates it was at $285,500 per annum for three years.
The St Kilda Road leasing announcement has been billed as the largest new leasing deal transacted on St Kilda Road for more than a decade.
Number 549 St Kilda Road has a total building area of about 9,545 square metres, and 209 car spaces are being taken up with the lease.
Spotless will be use part of the ground level as a staff café, with the possibility to later open it to the public.
“The fundamentals of the building were ideal for Spotless’ needs, because it provided six, contiguous whole floors and large floor plates of around 1,570 square metres,” Mr Christie said.
Ari Singer, asset manager for Nikos Property Group, said since purchasing the building, the private investment group had been planning one of the most substantial refurbishments ever undertaken on a building in St Kilda Road.
“We saw enormous potential with 549 St Kilda Road, given tightening market conditions and the lack of office stock available for tenants seeking areas of 5,000 square metres and above in the CBD and fringe markets,” Mr Singer said.
