Canva snaps up Sydney office site in $120m deal

The software company is likely to overhaul its new building and could make it a new headquarters as it looks to dramatically step up its operations.

Canva co-founders Melanie Perkins, Cliff Obrecht and Cameron Adams Picture: John Feder

Technology unicorn Canva is putting its stamp on the technology precinct emerging near Sydney’s Central Station by snapping up an ageing office building for more than $120m.

Canva already has a headquarters in inner-Sydney’s Surry Hills from which the three founders – Melanie Perkins, Cliff Obrecht and Cameron Adams – have taken the online graphics platform global.

Investors recently slashed their valuations of the company by as much as 40 per cent but Canva is still worth about $32bn and is a local tech leader.

The software company is likely to overhaul its new building – which sits on the same street in Surry Hills – and could make it a new headquarters as it looks to dramatically step up its operations.

The entire area is benefiting from a regeneration, with software company Atlassian also building its headquarters in the nearby precinct around Central Station.

Property groups Dexus and Frasers have also proposed a twin tower development aimed at technology companies and private developer Toga is also planning a skyscraper.

Canva is buying the Surry Hills building known as Kippax on Central, which has a trophy position but was billed as a value add opportunity. The software player beat traditional office investors in the contest for the building but has declined to comment.

Real estate agency Knight Frank’s Ben Schubert and Jonathan Vaughan handled the sale of the complex at 8-24 Kippax St for a private company.

The building can accommodate Canva and has a potential area of 8,568sq m on a full floor basis, though Canva is likely to re-work the complex.

The site was billed as a premium address for technology, media and telecommunications tenants in Surry Hills. Major occupiers on Kippax Street include Sony and Blackmores.

Canva already occupies about space in other buildings on the same street. In late 2020, German group Real I.S. bought the buildings which currently house Canva as part of a $97m deal.

Real I.S. bought those two adjoining office buildings on the corner of Kippax St and Waterloo St and it is not clear what Canva will do with its space in those locations once the new building is ready.

Canva has a policy in which staff, if they choose, can come into the office a mere eight times a year but it is becoming a major o a global company.

The company will take on about 1000 people this calendar year to lift its total workforce to about 3100.