140 George St, Museum of Contemporary Art

Client
Museum of Contemporary Art (MCA)

Property Type
The MCA is a 6 level stone building completed in 1952. Since 1991 it has been occupied by the MCA for functions, galleries and administration. The building is on leasehold title from Sydney Harbour Foreshore Authority (SHFA).

Background
In March 2012 the MCA completed a $53M extension of a new building to the north known as the Mordant Wing. With the MCA relocating this left commercial space of 1,000m2 on level 5, and 700m2 on level 4 available for refurbishment and lease. There was time pressure to lease this space as it affected the MCA’s revenues.

Marketing Strategy
The client’s preference was for a direct campaign to targeted industries, with less emphasis on web marketing. We identified industry groups cohesive with the MCA’s business, social and cultural activities. Being such an iconic building there was strong interest from a wide range of tenants, but only small number of users was suitable. Lease Process
Ray White was engaged as exclusive Agents and conducted “under construction” inspections with selected prospective tenants on a weekly basis over a period exceeding 6 months. Negotiations were challenged by pressures on completion dates, construction costs, funding arrangements and asbestos discoveries on site requiring remediation to the mortise on the façade.

AT Kearney’s negotiations included coordination of base building finishes to integrate with ATK’s fit out. Over 3 months was required to negotiate heads of terms involving Ray White, SHFA, MCA, and ATK’s head office in New York, legal counsels on all sides and ATK’s tenant advisor.

The Australian Olympic Committee’s transaction included the usual challenges negotiating a 12 year lease but also factored collaboration on usage of the MCA’s seminar, exhibition, lectures rooms, sculpture terrace and rooftop venues. Negotiations included discussions with Simon Mordant AM (Chairman of MCA), Euan Upton (COO of MCA) and Brian White (Chairman of Ray White). The result has been a perfect marriage of the Arts, Commerce and Sport in one of Sydney’s most enviable locations.

Lease Analysis* – Last 6 transactions

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