Chinese developer Hengyi commits to Australia with five-year lease in refurbished London & Lancashire Building on Collins Street

Hengyi Australia, the Chinese developer transforming the former Telstra "ghost building" on William Street into serviced apartments, will lease office space in the iconic London & Lancashire Building at 400 Collins Street.

Signaling a long-term commitment to projects in Australia, Hengyi will lease 700 square metre premises over both ground and first floor levels on a six year term with a five year renewal option.

The rental was not disclosed but is believed to be around $500 a square metre per annum net.

The London & Lancashire Building dates back to the 1940s and is built in the Palazzo style with a facade of stone in the Italian Renaissance style.

Hengyi Australia is an affiliate of Chinese developer, Shandong HYI (Group) Co. Ltd.

The deal was brokered by Savills’ associate director of office leasing, Mathew Kent.

Kent said tenancies in the seven level, heritage-listed building had attracted a high level of demand due to its quality refurbishment, the size of the floor plates, and the much sought after Collins Street address.

The building is now more than 60% leased with only three floors remaining.

 Hengyi director Jeff Wang said the Collins Street address and long term commitment signified Hengyi’s assimilation into Australian corporate life. 

"With our 530 apartment project, The William, to be completed in the middle of next year and a number of projects in the pipeline we are very busy,” Wang said. 

Hengyi will relocate from 190 Queen Street.

The lessor was Sarchi Property Pty Ltd.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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