Government Considers Relocation

Sydney Morning Herald

Tuesday May 18, 1999

Edited by Carolyn Cummins

The NSW Government is considering reducing its core CBD accommodation by relocating various departments to the southern end of the CBD as well as looking at space at Parramatta.

According to property analysts, should the Government decide to move, it would offer some respite for the southern end of the CBD, which is finding it tough to compete with the lucrative leasing deals being offered for the new properties in the CBD core.

However, the Government also has space in prime locations such as Governor Phillip and Macquarie towers at 1 Farrer Place, where the Department of Urban Affairs and Planning, the Office of the Treasurer, Treasury, the Minister for Sport and Recreation, State and Regional Developments and Public Works have offices.

It is estimated the NSW Government occupies about 31,600 sq m in the buildings with lease expiries between 2004 and December 2006.

Although it is unlikely the space would be vacated in one hit, there are concerns that the Government, on behalf of the taxpayer, is paying the higher rent in the two towers.

There are also two floors at Grosvenor Place leased to the State Government.

Should the Government move to less expensive locations, the major beneficiaries could be General Property Trust's 580 George Street, BT Property's Centennial Plaza at 260-280 George Street and Westpac Property Trust's 1 Market Street.

According to property analysts, a move by the Government to Parramatta would benefit trusts, including Mirvac Property Trust with its 30 Cowper Street site, Armstrong Jones Office Fund's Jessie Street property, WPT's Octogen Centre and National Mutual Property's Fergusson Centre at George Street.

There already has been some movement in the State Government with a variety of departments taking space at the southern end of the CBD around Goulburn Street.

© 1999 Sydney Morning Herald

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