ISPT welcomes first new tenants to 500 Bourke St, Melbourne following $160m transformation

25 March 2024

Leading Australian property fund manager ISPT has re-opened the doors to tenants following the completion of its A Grade commercial and mixed-use CBD asset, 500 Bourke, after a major $160 million redevelopment.

Situated in the heart of Melbourne’s financial and legal precinct, ISPT embarked on a complete re-positioning of the iconic 500 Bourke building, in partnership with multidisciplinary design practice Fender Katsalidis, with the transformation taking just under two years to reach completion.

A significant 61 percent of the space, equating to 26,538 sqm, has been leased by nine tenants to date, with strong market interest for the remaining space, demonstrating the ongoing demand for high-quality office space in prime locations.

This includes a number of prominent corporate tenants including anchor tenant partner TAL which signed a longer-term lease for 6,500 sqm, Russell Kennedy Lawyers signing a lease for 5,261sqm and Holding Redlich signing a deal spanning 3,945 sqm. Leading business advisory, accounting and assurance provider PKF is the first tenant partner to move into the building after signing a lease for 2,200sqm.

ISPT’s Head of Portfolio – Office, Nicole Ward, said that the latest tenant commitments reaffirm how 500 Bourke aligns with today’s business needs and how ISPT is setting the benchmark for exceptional destinations that offer more than just a physical workplace.

“We are immensely proud of the 500 Bourke transformation and it’s leasing success to date. The building offers a rare opportunity for tenants to become part of a community precinct with supercharged amenity on their doorstop, underpinned with an ESG led design strategy, we’ve seen this translate into a number of prominent tenants committing to the asset.

“Transforming 500 Bourke future-proofs the asset in a competitive market. Not only is it at the forefront of sustainability, but the revitalised dining precinct also brings culture and community to the building’s core.

“The property’s location set amongst Melbourne’s coveted legal precinct, its tailored and customisable floorplates and best-practice ESG commitments means 500 Bourke is aligned with our clients’ values and business objectives while also meeting the needs of office workers now and well into the future.”

The building, which was fully occupied by NAB before the bank relocated in 2021 to another ISPT building, has been transformed with the principles of ESG excellence, with a complete overhaul of the interiors and third spaces, to deliver what is effectively a new build within an existing shell, offering 44,000sqm of office space over 34 levels.

500 Bourke offers its tenant partners and customers premium onsite retail, dining and wellness amenities, the latest technologies, alongside convenient third spaces and Flex by ISPT which delivers well-appointed meeting rooms, premium conference amenities and private suites for short or long-term occupancy.

Notable introductions to the precinct include an open-air, day-to-night, retail and dining plaza that features a brand-new offering, SilkSpoon, from Victor Liong of Melbourne’s famed Asian bistro Le Ho Fook, as well as hospitality veterans Rosa’s Canteen and Movida Aqui, the latter of which has re-opened with a brand-new inspired fit out.

On the sustainable transformation, Steven Peters, ISPT’s Chief Sustainability Officer, said:

“The greenest building is the one that is already built. By maintaining the existing building and continuing its 40+ year legacy, we have repurposed the asset through the lens of ESG, we are leading the way in impact-driven investment and embedding circular economy principles into the full lifecycle of the building.

“Sustainability is now a necessity for many tenants – and 500 Bourke represents one of the first net zero carbon buildings in Melbourne: low upfront emissions, highly efficient, fully electric, and powered by renewables.

“Currently 84% of our total portfolio is powered by renewable energy, with a target of 100% by 2025. It reflects ISPT’s wider commitment to building a better and more sustainable future for our investors, customers and communities.”

Paul Gleeson, Managing Director at Russell Kennedy, said:

“The 500 Bourke building is a great fit for Russell Kennedy in Melbourne. We are eager to move into our new tenancy that’s been designed to meet the needs of our business.

“It’s modern design, advanced technologies and sustainable initiatives will support our people and the growth of our business into the future.

“We look forward to making the most of what the rejuvenated 500 Bourke and surrounding precinct have to offer.”