Nab Stays Put At No. 500

The Age

Wednesday July 2, 2008

Chris Vedelago and Marc Pallisco

NATIONAL Australia Bank is sticking with its long-time headquarters at 500 Bourke Street, with the group announcing it had signed a 12-year lease as ISPT's $75 million refurbishment of the building continues.

NAB has fully occupied the 37-storey, 47,000-square-metre building since it was built 30years ago.

This renewal marks the second time in three years the bank has chosen to remain in the CBD, instead of relocating closer to its new landmark Docklands building at 800Bourke Street.

Simon Le Gear, NAB's general manager of property, procurement and environmental operations, said keeping a high-profile CBD presence was a core consideration in the decision to stay at 500 Bourke Street.

NAB also cited ISPT's floor-by-floor and capital works refurbishment as a big factor in remaining, which will see the building seek a five-star Green Star rating. The bank has pledged to be carbon neutral by 2010, and all its buildings must achieve at least a four-star Green Star rating.

ISPT's progressive refurbishment schedule brings one floor of A grade stock on line every three weeks, with more than one-third completed and the entire project expected to be finished late next year.

The building will also get new front and rear entries, 1260sq m of retail space, storage and hygiene facilities for 150 cyclists, and a child-care centre.

Daryl Browning, ISPT's chief executive, said developers should focus on upgrading and greening existing buildings to ensure only "absolute redundant stock" was removed from the market.

"ISPT is setting an example in sustainability in a significant building where the tenant also appreciates and endorses the goal," Mr Browning said.

"The fundamentals of (500Bourke Street) are good."

Rent for the refurbished floors are estimated to be in the mid-$200 a sq m range.

NAB is spending about $35million on a state-of-the-art fit-out, which will increase the capacity from 3000 employees to more than 4000 through workspace rationalisation and flexi-desking.

NAB purchased 500 Bourke Street, known as National Bank House, from Abbey Capital in 1977, and sold it, along with other offices in Adelaide and Brisbane, to then Industry Superannuation Property Trust No.2 in 1998.

The bank reportedly passed on an opportunity to expand its offices in Docklands in 2006 and leased about 23,500sq m of space in 555 Collins Street.

Other banks to have made decisions on their office accommodation include ANZ, which is moving to Lend Lease's Victoria Harbour in Docklands.

Commonwealth Bank and Westpac have both decided to stay put at their existing Melbourne CBD offices, after a failed hunt for space in 2006 and last year.

KEY POINTS

- Pledge to be carbon neutral by2010.

- One floor comes on line every three weeks.

- Space and facilities set aside for 150 cyclists.