Mercantile Looks At Office Expansion
Sydney Morning Herald
Monday May 8, 1995
Mercantile Mutual is investigating options for a $10 million-$20 million extension of its Sydney headquarters at 347 Kent Street, two years after moving in with space to spare.
The firm's dilemma is being repeated throughout Sydney as tenants assess their space requirements in readiness for the next business cycle.
The merging oil giants Ampol and Caltex, the Boston-based State Street bank, Price Waterhouse, Citibank and Macquarie Bank are a few of the major tenants in the market, with a combined space requirement estimated at more than 120,000 sq m.
But unlike its competitors, Mercantile Mutual is looking to stay put, despite numerous approaches from leasing agents.
Mercantile Mutual's property manager, Mr Victor Gasper, said that preliminary discussions had been held with Sydney City Council to extend the Kent Street building by about 7,000 sq m. Discussions had centred on a possible extension of the building out over an existing atrium.
One other possibility was to increase the height of the building by about five floors, an option being investigated under the planning guidelines for the site, which had been altered since the building was developed. Mr Gasper said the second option would give the building - which was relatively low-rise at 13 storeys - more of a landmark status in the city.
The extension will cater for a faster than expected expansion in the banking and life insurance businesses of the company.
Mercantile Mutual relocated to the building anticipating that it would take seven years to fill the available space. But the last pockets of space are now being fitted out.
Mercantile Mutual owns the buildings - it was pre-sold to the company by CRI Ltd for $150 million - but occupies the space under a sublease from Ernst & Young.
© 1995 Sydney Morning Herald
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