NBN Leases Half of Dexus' $600 million North Sydney Tower

NBN Co, the builder of Australia's National Broadband Network, has committed to lease nearly half of the $600 million-plus 100 Mount Street office complex in North Sydney.

The 35-storey tower, initially leased by Laing O'Rourke -- who is also building the tower -- commenced construction in 2016. The announcement of NBN's commitment is the first major leasing deal since Dexus and the unlisted Dexus Wholesale Property Fund started construction in mid-2016.

NBN has leased 20,364 square metres, representing 48 per cent of the building, and is consolidating its office space from five locations across Sydney.

NBN joins Laing O’Rourke, the building’s anchor tenant, taking pre-commitment to 60 per cent prior to the completion of construction which is expected to be achieved in early 2019.

“We are pleased to have enabled NBN to consolidate from multiple Sydney and North Sydney locations into one, and meet the needs of an innovative and growing group through incorporating smart building technology in our newest Dexus Workspace," Dexus chief executive Darren Steinberg said.

“The dynamics of the North Sydney market will continue to improve through the delivery of new transport infrastructure and public amenity. 100 Mount Street is attracting good interest from high calibre customers looking to either upgrade or expand as the vacancy rate continues to decline towards 6.9 per cent in North Sydney and 4.1 per cent in the Sydney CBD,” Dexus' executive general manager Kevin George said.

100 Mount Street will feature high-levels of customer amenity including end-of-trip facilities, concierge, and smart building connectivity designed to provide customers with flexibility. The development will target 5 star Green Star and 5 star NABERS Energy ratings.