SAP commits to landmark North Sydney

CBRE today announced that SAP has confirmed plans to relocate its Australia and New Zealand headquarters to Winten Property Group’s landmark 1 Denison Street office tower.

SAP, the market leader in enterprise application software, has committed to lease circa 6,000sqm of space in the North Sydney building, which is scheduled to be completed in late 2019.

CBRE represented Winten in the lease negotiations. The 10-year agreement follows last year’s circa 17,000sqm commitment to 1 Denison by anchor tenant Nine Entertainment Co. 

SAP Australia and New Zealand (ANZ) will relocate its market unit headquarters to the tower upon the expiry of its lease in nearby 168 Walker Street, North Sydney. It will also continue to serve its ANZ customer base out of offices in Brisbane, Canberra, Melbourne and Perth in Australia, and in Auckland and Wellington in New Zealand.

SAP ANZ President and Managing Director Colin Brookes said the relocation was motivated by securing the best outcome for SAP’s customers and partners, and most importantly ensuring a great place to work for its people.

“The SAP business in Australia and New Zealand continues to deliver growth. The relocation of our local headquarters to 1 Denison is another example of our ongoing investment into this market, in the name of customer, partner and employee success,” Mr Brookes said.

Winten Property Group Development Director Stuart Vaughan added; “We are pleased to have SAP as tenants in the mid-rise of 1 Denison, which takes us to 40% pre-committed. 1 Denison’s visual appeal and premium quality is resulting in us receiving strong interest from a range of other tenants in the market.”

On completion, the 39-storey, 1 Denison Street tower will be the tallest skyscraper in North Sydney. 

A further 33,000sqm is available for lease following the SAP and Nine Entertainment Co pre-commitments.

CBRE Regional Director John Hickey said; “1 Denison’s prime location adjacent to the new Metro train station, in conjunction with North Sydney Council’s pedestrianisation of the precinct, will result in a vibrant new hub for North Sydney. This will attract new tenants to the market and assist in the retention of major North Sydney occupiers such as SAP.”

The 1 Denison Street project will incorporate circa 2,000sqm of luxury shopping and restaurants over two levels as well as circa 58,000sqm of premium grade office space in the tower above, which will offer views of Sydney Harbour.

Net office rents for the balance of the building average $885 per square metre.