WeWork lands a Collins Street beachhead
Global co-working giant WeWork will hang out its shingle on Melbourne’s premier business avenue, Collins Street, in a historic building once commandeered by General Douglas MacArthur.
WeWork has now confirmed its arrival in Melbourne, reported earlier in The Australian Financial Review, to take up almost an entire building on Collins Street owned by the Liberman-family backed Impact Investment.
The arrival of the global co-working giant has been hotly anticipated in a city where the rollout of co-working hubs has surged over the past three years.
“Melbourne is home to startups, big businesses, and creative entrepreneurs pioneering innovation across industries old and new,” said WeWork’s managing director for the Asia Pacific Ole Ruch.
“The city is a natural next step for WeWork and our growing Australian community, and we’ve seen great interest in a Melbourne location from both our existing Sydney community and Melbourne-based businesses alike.
“We can’t wait to see what new ideas and innovative products come out of WeWork Melbourne.”
WeWork has taken a lease over about 6000 square metres at 401 Collins Street, which is undergoing a major refurbishment to its facade, lifts and plant.
The stylish 11-storey building was once occupied by General Douglas MacArthur as his headquarters for US Army forces in World War II.
Seven decades later WeWork will take up the nine commercial levels of the building, the former Bank of Tokyo House that was built in 1937.
The iconic property was bought by Impact in 2014 for $32 million through a sale and leaseback to its tenant Roy Morgan Research.
Impact, led by Chris Lock, has resolved a dispute with its tenant Roy Morgan – the wrangle was settled in court after the pollster was briefly evicted – and WeWork is expected to move in before the end of the year.
WeWork has set up more than 120 shared work spaces around the world since February 2010.
Its entry into the Australian market began in Sydney last year. The co-working hub has opened at 5 Martin Place, a restored Pyrmont woolshed and has a pre-commitment to Charter Hall’s redevelopment of 333 George Street.
“We’re looking forward to starting the next chapter in this remarkable building’s life,” Mr Lock said.
“When we buy older properties like this one, we look for ways to adapt them for modern use, whether it’s making them more energy-efficient, or fitting them out to support the kinds of jobs that will exist in the new economy.
“It shows that these pre-war buildings, built to endure as they were, can still contribute to Australia’s move towards lower carbon emissions.
“401 Collins has great potential to be redesigned for innovative commercial space. It is a landmark in the heart of Melbourne’s banking and financial services district, where we can see demand for high-quality working spaces.”
Impact is controlled by Chris Lock and Small Giants, the family office of Daniel Almagor and Berry Liberman. Since its establishment in 2013 it has grown rapidly, with about $400 million in funds now under management.
Last month Impact made headlines with a $140 million investment into the world’s tallest timber office tower being developed by Lendlease in Brisbane.
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