Origin Energy has narrowed the search for its Queensland headquarters, one of the largest office briefs in Brisbane, down to three options.
Sources said this week that the listed energy giant has prepared draft head of agreement leases with three owners and a decision on its long-term home will be made shortly.
One of the options for Origin, which has a brief out for 15,000 to 19,000 square metres, is to stay put while the other two are new commercial developments on Ann Street in the CBD.
An Origin spokeswoman declined to comment on the negotiations.
“We are in commercial discussion with a number of parties at present about future accommodation requirements,” she said.
“We are not in a position to share a shortlist in relation to these discussions.”
Many property executives believe Origin will choose to remain at AMP’s Coronation Drive office park on the city’s fringe in Milton. In addition to AMP’s building – which is co-owned by SunSuper – Origin also occupies the adjacent John Oxley Centre owned by Blackstone at the precinct.
It is understood Origin would want to expand by several floors if it chooses to stay. The owners would likely be pushing a good deal to stay given Origin is such a major tenant for the precinct.
The other two options, located in the city’s CBD, will be more expensive although sources said cost has not been one of the main issues for Origin in terms of office space.
Origin, as with many other companies in the sector, has been negatively impacted since oil prices started their decline in 2014. However, the company boosted guidance in April and said year-to-date revenues were running higher than a year earlier.
One of the shortlisted sites in the CBD is the the new Daisho skyscraper at 180 Ann Street, which is also going to be the Brisbane headquarters of Commonwealth Bank of Australia, making Origin the second major anchor if it chooses to go there.
The third shortlisted building is Cornerstone Properties’ refurbished tower at 310 Ann St, which is due to be completed in the first half of next year. Origin would be able to occupy the whole building, which is undergoing a big refurbishment.
AMP is handling the leasing for Coronation Drive, Colliers International and Knight Frank are appointed on 180 Ann Street and JLL is handling the leasing for 310 Ann Street.
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