Land swap deal with Addenbrooke to net new $135m office for A2B
Australian Financial Review | By Martin Kelly
Sydney developer Addenbrooke has agreed to build a nine-storey office building with an end value of $135 million in a land swap deal with ASX-listed mobility and payment company A2B Australia.
In broad terms, Addenbrooke will build the office on approximately 2500 square metres of land it now owns at 20-24 Bourke Road, Alexandria, which adjoins the much larger A2B holding at 9-13 O’Riordan Street near Green Square.
When complete, Addenbrooke will hand over the building and the land to A2B. In return, it will own A2B’s current holding of almost 8000 square metres, which it is viewing as a long-term hold with commercial development potential.
“Obviously we’re really excited about this project and are excited to see it progress,” said Ned O’Neil from Addenbrooke.
“Stage one is to develop the HQ for A2B and then off the back of that we’ll ultimately develop the current A2B site. “We’ll develop that land into commercial in the future, so it’s a long-term deal for us.”
Mr O’Neil said Addenbrooke owns other property in the area and, in general terms, is focused on commercial development.“We’re pretty bullish on Green Square as a precinct, the city fringe and the amenity of the area we think is second to none,” he said.
“Our outlook is mainly on commercial, delivering office buildings which respond to the new way of people working while responding to COVID as well.”
Andrew Skelton, chief executive at A2B, said the company has signed a memorandum of understanding for the land swap and that transaction documents will be finalised next May.
He said A2B staff will occupy two to three levels of building, which will have a net lettable area of 9634 square metres, and lease the remaining space out, potentially generating $3 million income a year.
Transport, mobility and technology are at the heart of the business, which owns numerous brands including 13cabs, Cabcharge and Silver Service.
Mr Skelton said the new building will be a state-of-the-art hub incorporating electric vehicle charging stations and other transport industry service facilities to cater for its client base.
“We don’t operate a taxi business onsite, but we do a bunch of technology installations, we do vehicle sanitisation, and we provide support, admin, training services to professional drivers in the taxi and hire car industry,” he said.
“It’s a support hub for people who are providing transport in the community.”
Assuming all goes well, the building is due to complete in 2025.
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