25/06/2010 BUNDY BEAR PARTIES INTO McMAHONS POINT
Diageo , the world’s leading premium drinks distributor, is about to party over the bridge and into McMahons Point. The company with brands including Smirnoff, Johnnie Walker, Captain Morgan, Baileys, J&B, Jose Cuervo, Tanqueray, Guinness, Gilbey’s, Gordon’s, Pimm’s and Bundaberg Rum, has taken an eight year lease on a contemporary warehouse style building at 162 Blues Point Road. Diageo will make the move from Bondi Junction.
Tom Mott and Kymbal Dunne of m˛ Office Leasing introduced and managed the lease transaction with Diageo on behalf of their client, a large Australian Institution.
162 Blues Point Road was formerly the headquarters for the advertising house, Leo Burnett Connaghan & May. Prior to being occupied by Leo Burnett Connaghan & May for ten years, the building, which is located in the historic Chuter Estate, was a government occupied warehouse.
“There was nothing straightforward about this deal,” commented Tom. “Having been tenanted for ten years, it needed significant refurbishment. The zoning was restrictive and we were faced with a quiet property market. That said, with its buzzy locale, funky warehouse style, killer harbour views and entertainment roof deck, we could see it had great potential. Voids cut through slabs allow natural light to flood the lower levels and a central open stair way adds to the sense of space. Each floor has 1,350m˛, which while expansive, is easy to move through. There are 61 marked car spaces, bike racks and lockers for cyclists,” said Tom.
“We recommended a refurbishment, and immediately suggested that our client seek to have the building rezoned from a light industrial residential classification into a commercial zone. The idea behind the rezoning was to lessen restrictions on the building’s usage and broaden access right,” said Kymbal.
The building owner was happy to proceed with m˛ Office Leasing’s recommendations.
Despite a very weak market, m˛ Office Leasing and their joint marketing agent, Colliers International represented by Chris Cordwell, identified several interested parties prior to refurbishment. While some were after half the building and some wanted to lease the entire space, no party pursued the opportunity.
“We theorised about leasing the building to one tenant or splitting it, but having done the projections, we decided it would be most profitable leased to one tenant,” said Tom.
Interest intensified once refurbishments were complete and Diageo quickly signed as a sole tenant for the entire 4,056m˛.
“In the end the transaction progressed smoothly,” commented Kymbal. He added, “North Sydney Council should be congratulated for assisting with the planning process and expediting the rezoning application. The Council has helped us create a win-win situation – Diageo is a very happy tenant and local retail businesses will soon no longer miss Leo Burnett Connaghan & May’s 300 workers.”
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