NBN looking to lease into top-end offices in Sydney and Melbourne

NBN looking to lease into top-end offices in Sydney and Melbourne
NBN looking to lease into top-end offices in Sydney and Melbourne

NBN Co, which is rolling out the National Broadband Network, is eyeing two new office headquarters in Sydney and Melbourne.

The company, which has come under criticism for slow network speeds and quality, is set to move into Dexus' 100 Mount Street development, close to the new Victoria Cross Metro rail station in North Sydney, The Australian Financial Review reported.

In Melbourne, it is understood to have signed on for around 20,000 square metres at the final tower in billionaire Lang Walker's Collins Square project.

The new Sydney office of NBN has Sydney Harbour views and the company is expected to take half of the 41,500 square metres building that has more than 34 office levels.

Rents could range between $700- $750 per square metre per year, the AFR said.

Meanwhile, in Melbourne, the Collins Square project is well advanced and the last building, known as Tower 5, already has a commitment from Transurban for around 16,000 sq m.

The NBN tenancy will nearly fill that final tower in the $2.5 billion mixed use project.

The NBN deal is expected to be struck at somewhere between $575 and $590 per sq m on a net face rent, according to industry sources.

The tower is due to be completed in 2018.

The timing of the moves come amid a review being ordered by the Federal government as the rollout gets mired with complaints of high costs and poor quality of service.

Already, the company is reviewing the pricing for the $50 billion broadband network.

The chief executive of NBN, Bill Morrow, recently said the company is facing an image problem. Telcos have complained that it was the NBN's pricing mode that was driving up their prices, while at the same time around 15 per cent of users were facing problems.

NBN declined to comment on its leasing plans.

Office Lease Nbn


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