Tech giant Atlassian has lost its battle to redevelop the Australian Technology Park tech hub, with NSW planning minister Robert Stokes announcing the 14-hectare site on the fringe of Sydney’s CBD has been sold to a rival Mirvac-led consortium.
Atlassian co-founder Mike Cannon-Brookes had been fighting for control of the NSW government-owned site in a two horse race against the Mirvac/Commonwealth Bank bid.
The amount paid for the 145,000 square metre site has not been disclosed, but it’s expected to be more than $200 million.
The CBA will become the anchor tenant at Australian Technology Park, which the Mirvac Group-led consortium will acquire and redevelop by 2020. The bank will lease 93,000 square metres of office space across two state-of-the-art buildings on a 15 year term, relocating 10,000 people there.
Atlassian partnered with Walker Corporation in a rival bid, with Cannon-Brookes fearing it could be lost to the tech industry under the Mirvac plan, but planning minister said the sale excludes residential development on ATP.
“Our aspiration for this site is to continue the transformation from dilapidated railway buildings to a growing technology hub,” Stokes said.
“Mirvac and its partners have made a commitment to revitalise the existing technology precinct, and the NSW Government has secured ongoing environmental, heritage and access commitments.
“The consortium has made a commitment to improving community facilities within ATP through a significant investment to upgrade to public areas.”
Mirvac will develop new office space and turn the former locomotive workshop at the Eveleigh railyards into a dedicated for technology and innovation users and startups.
The precinct will include sporting facilities, open spaces, retail, child care, a gymnasium and cafés, bars and restaurants, with the developer saying it wants to create a village hub atmosphere
Up to to 75,000sqm of floor space capacity will be reserved at ATP for technology uses. Mirvac has also signed an Memorandum of Understanding with the University of Sydney to support digital and creative industries and said there is potential to accommodate other tech companies within the campus.
The planning minister said proceeds from the ATP sale will be used for infrastructure investments in the Central to Eveleigh corridor.
Commonwealth Bank chief financial officer David Craig, said the deal will create the largest single site for the bank’s employees.
The CBA will leave existing offices in Parramatta, Sydney Olympic Park and Lidcombe, consolidating the workforce in Redfern at the new site.
“Moving to the transformed Australian Technology Park will put 10,000 of our people in the heart of a growing technology hub, providing us with a significant opportunity to partner and collaborate with universities, start-ups and other innovative companies,” he said.
“In addition, the proximity of Australian Technology Park to our existing Sydney CBD offices will allow for better integration with these locations and enhance collaboration by bringing our people closer together.”
Commonwealth Bank will also partner with Mirvac and Centuria to establish a new $2.1 million Tech Incubation Fund in a bid to encourage technology startups to set up to the ATP.
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