A complex and innovative project
Located in Sydney’s Tech Central, global software giant Atlassian’s headquarters (Atlassian Central) will be a 39-storey tower that anchors the NSW Government’s Tech Central innovation and technology precinct.
Atlassian Central is currently under construction and expected to complete in 2027. It is set to be the world’s tallest hybrid-timber tower and built from highly sustainable materials. It will boast a naturally ventilated gardened interior consisting of several three-storey habitats allowing for cohabitation and interaction between the levels and approximately 4,000 Atlassian employees.
Once complete, Atlassian Central will be an attraction synonymous with Sydney’s emerging Tech Hub. The landmark tower will be testament to Atlassian’s environmental, social and governance ethos and provide its employees with a uniquely world-class workplace. Meanwhile, Tech Central is envisaged to create 2,500 construction jobs over the next few years, along with $1 billion investment to the NSW economy.
What was needed
- Acquisition of titles and part titles of neighbouring landowner sites
- Resetting the ground lease with the NSW Government and an adjoining major property developer
- Consideration for the inclusion of a pedestrian zone
- A detailed Value for Money (VfM) and economic benefits assessment (EBA) to address NSW Government Direct Dealing requirements
Please refer to FAQs for further details.
What we did
KPMG was first engaged in 2019 to help Atlassian develop its Direct Negotiation Proposal to the NSW Government.
As VfM adviser, the KPMG Infrastructure, Assets & Places’ Real Estate Advisory & Transactions team formulated the VfM assessment, which provided a solid bedrock for Atlassian’s proposal to clearly articulate its commercial position and outcomes to the state. This helped unlock the negotiation pathway between Atlassian and the state and subsequently the transaction pathway to source an investment partner. KPMG Planning & Infrastructure Economics provided support through an Economic Impact Assessment while the financial modelling team conducted an audit for the proposed financial model.
Once the initial engagement was completed, Atlassian engaged KPMG Tax, Legal and CFO Advisory teams to provide ongoing financial stability evaluations of potential delivery partners, legal advice on policy position and ongoing tax and accounting advice to deliver the project.
The engagement provided an excellent opportunity for KPMG to bring the depth of our expertise from across the firm to assist Atlassian in executing a complex and innovative project that sat well outside the client’s business as usual.
What we delivered
- Development assistance for the Direct Negotiation Proposal to the NSW State Government, including:
- overarching Value for Money (VfM) advisory
- a Value for Money Report
- an Economic Impact Assessment (EIA)
- a Model Audit of proposal financial model
- Successful Direct Negotiation process with the NSW Government resulting in the incorporation of the state-owned subterranean lot into the development.
Key contacts
FAQs
Where in the Tech Central precinct is the Atlassian building site?
Atlassian had considered a number of sites prior to selecting the Youth Hostels Association (YHA) site adjacent to Central Station. Under the terms of an Option Agreement with the YHA, Atlassian are required to accommodate a new YHA short stay accommodation facility (circa 480 beds) within the project.
Were there any challenges in acquiring this site?
The innovative and bold design of its building presented unique challenges for Atlassian, relating to leasehold and freehold ownership complexity. Specifically, the target Tech Central site involved the acquisition of a number of titles, including part titles of neighbouring landowner sites and the resetting of the ground lease with the NSW Government and an adjoining major property developer.
Furthermore, a pedestrian link zone and building would need to be incorporated in any development given the significant public reliance on thoroughfare.
What is the state government’s Direct Negotiations process?
Direct Negotiations provide opportunities for the government and the non-government sector to work together to develop and deliver innovative ideas, places, services and infrastructure. Successful projects have generated billions of dollars for the NSW economy to date.
What was involved in KPMG’s overarching VfM advisory services to Atlassian?
We provided the following overarching VfM services:
- Formulating VfM basis of the proposal, aiding Atlassian in articulating its commercial position.
- Advising Atlassian on the transaction pathway to ensure continued progress and success of the project.
- Guided Atlassian to navigate the Direct Negotiation process with the NSW Government.
