ASX finds Martin Place home in coup for finance strip

The Australian Securities Exchange is moving its head office to a new Investa and Manulife Investment Management tower at 39 Martin Place, Sydney.

The Australian Securities Exchange has signed a deal to shift to a premium tower above the new metro station in Martin Place, taking it into the heart of Sydney’s financial district.

The tower at 39 Martin Place, being developed by Macquarie, was pre-sold to Investa and Manulife Investment Management for about $800m in 2021 and will become a landmark that will also house major corporate and legal tenants.

The ASX has now entered an agreement to lease a number of floors in the building’s high-rise and the exchange is also taking retail frontage off Martin Place that will be used as an event space, including for bellringing ceremonies, and to display market trading data on large digital screens.

The exchange, which was advised by CBRE, will also have exclusive sky signage on the facade of the building, once approvals have been secured.

The upcoming shift from 20 Bridge St comes as the ASX considers the expiry of its Bridge St leases, leaving landlord Hong Kong-based Early Light International to now find a new anchor tenant.

The Martin Place tower will be owned by the unlisted Investa Commercial Property Fund and Manulife’s General Account through a 50-50 joint venture. The complex is one of the few premium new office developments nearing completion in Sydney’s centre, with Charter Hall’s Chifley South and Mirvac’s 55 Pitt St the other major projects.

“With 39 Martin Place now approximately 85 per cent pre-committed, Manulife and ICPF are really pleased to welcome ASX to its roster of blue-chip clients, including Ashurst,” ICPF fund manager Brendan Looby said. “Strong interest from leading corporates in 39 Martin Place demonstrates the flight-to-quality trend continues to be a key driver of market demand in Sydney.”

Designed by Sydney architect Alec Tzannes, it will sport top sustainability features, including being a fully electric building. It is targeting a 6-star Green Star rating, a 5.5-star NABERS energy rating, and a NABERS water rating of 3.5 Stars.

Kenneth Tsang, Manulife Investment Management’s head of asset management real estate Asia-Pacific, said the tower above the new Martin Place metro station was in immediate proximity to retail, hospitality and wellness facilities.

The tower is expected to be completed in the third quarter of 2024 and will incorporate 30,000sq m of office space across 28 levels, as well as 2000sq m of retail.

The shift shows the strength of Martin Place in Sydney’s CBD core district, which is seeing a renaissance after some tenants left last decade for Barangaroo or to new buildings at Circular Quay. Big investors have emphasised the importance of such locations as well as the need for prime grade facilities.

Martin Place will really take off when the new Macquarie Group-developed buildings above the metro station are opened. It is developing two buildings near its existing headquarters. While the investment bank will take out a 75,000sq m tower above the station as its global headquarters, 39 Martin Place has been well let to other tenants via Investa.

The area is undergoing a renaissance and Investa successfully developed the nearby $1bn 60 Martin Place tower and super fund-owned 52 Martin Place is expected to be revamped. Dexus also overhauled 25 Martin Place with a $170m redesign and expansion of the building previously known as the MLC Centre.