Treasury Wine Estates is taking up a new headquarters in one of the best-known buildings in Melbourne’s Collins Street, the T&G Building owned by Pembroke.
The wines wholesaler, which has been under pressure from a supply glut in China, will move its headquarters into 161 Collins Street later this year, taking up 5200 square metres across levels eight and nine later.
The leasing deal is a major milestone for Pembroke, which took on risk when it bought the historic building in a massive $275 million deal in 2015, even as the building’s largest tenant, KPMG, had committed to shifting its 30,000 sq m headquarters to Docklands.
Vice-president and head of Australia Matthew Knight said the latest deal had vindicated Pembroke’s initial decision to take over the property at the Paris end of Collins Street.
“We were right in thinking that tenants would be seeking large floor plate workplaces at the eastern end of Collins Street, which they can’t get in any other building,” he told The Australian Financial Review.
“It was a point of difference in that market, which is both a risk and a reward.”
Since then, Pembroke has progressively leased up vacant space, with an early boost from long-term tenant IOOF, which agreed to double its occupancy, signing up for a new 10-year lease to 8000 sq m across two floors.
Built in 1928, the 43,000 square metre heritage building on the corner of Collins and Russell streets has vast floor plates of up to 4000 square metres.
New tenants have come, including professional services giant Accenture, along with Google and co-working group SPACES.
Colliers International’s Andrew Beasley brokered office space leasing in the building.
Treasury Wine Estates managing director for ANZ, Angus McPherson, said the global wine company had been looking for a distinctive and flexible space in a convenient location.
“Pembroke’s T&G Building delivers this within a world-class heritage building that is well suited to meet the practical needs of our business.”
With a design by Bates Smart and construction by Built, Pembroke undertook a wide-raging refurbishment, reworking the atrium and entrances among other things.
“Our design response to the T&G Building was both respectful of the site’s century-old heritage but reimagined with contemporary interventions,” said Tim Leslie, studio director at Bates Smart.
Pembroke’s Mr Knight said one of the key elements of the refurbishment was the creation of a so-called “third space”, an emerging trend in office foyers that allows tenants to take up space as needed.
“This is a tenant lounge. It has a mix of seating. You can have group meetings. It’s somewhere for guests to go and wait.”