Ashurst to move office

Leading law firm Ashurst will move its Sydney offices out of Grosvenor Place to the redeveloped “money box” in Martin Place.

The new agreement to lease, foreshadowed by The Australian Financial Review , was signed over the weekend by Ashurst and the developers of the new offices, the Commonwealth Property Office Fund and Cbus Property.

The building, 5 Martin Place, will be reworked and extended to provide large floors, a 5-star Green Star rating and a triple height lobby.

Ashurst will take levels 5-11, a total area of around 13,871 square metres, on a 10-year lease.

Rent and lease incentives were not disclosed.

Pepper Property director, and Ashurst’s tenancy adviser, Greg Smith, said the move would be cost effective both because of the rent, and the use of the space.

Grocon is expected to finish the building in early 2015.

Development cost, including lease incentives, will be $430 million.

Commonwealth Property’s fund manager, Charles Moore, said the project would show a first year yield of 7-8 per cent, an internal rate of return greater than 10 per cent and a development profit.

Colliers International director, Cameron Williams acted for Commonwealth Property and Cbus.