Atlassian tower approved as Dexus takes a pay strike at AGM

Software giant Atlassian has won approval for its new $1.5bn architecturally striking headquarters near Sydney’s Central Station.

An artist’s impression of Atlassian’s unique timber tower.

Software giant Atlassian has won approval for its new $1.5bn architecturally striking headquarters near Sydney‘s Central Station as governments look to stimulate activity around Australia.

The news came as the developer guiding the scheme, property company Dexus, copped a first strike at its annual general meeting, with 65 per cent of votes cast against its pay scheme.

The property company had spent up to reward top executives and reset their goals in the wake of the coronavirus crisis

An artist’s impression of Atlassian Sydney headquarters at Central Station.

The ructions from the pandemic have already changed the way that Atlassian is working, and it will now let its employees work from anywhere.

But that has not dimmed the commitment of co-founders Mike Cannon-Brookes and Scott Farquhar to develop a technology hub they hope will support their own company’s growth and a host of entrepreneurial start-ups in the area, which has been pitched as the Asia-Pacific answer to Silicon Valley.

The overall tech precinct will include Atlassian’s unique timber tower and another building, dubbed Central Place Sydney, built by Dexus with Singaporean developer Frasers, which will also host corporate tenants.

Developer Toga also has a tower project in the precinct and others are likely to follow suit as Sydney’s Tech Central precinct gets on track.

The NSW government believes the site will become a global technology hub, with the approval of anchor-tenant Atlassian’s new 40-storey headquarters and more land rezoned for the arrival of new technology players.

“With Atlassian HQ set for construction and the Western Gateway sub-precinct rezoned, the planning controls are now in place to transform this tired transport hub into something to rival Silicon Valley,” NSW Jobs and Investment Minister Stuart Ayres said.

Atlassian’s palnned Sydney Headquarters. Supplied

The precinct will house 25,000 jobs over 24 hectares, with the Atlassian headquarters alone accommodating 5000 operational jobs in the world‘s tallest hybrid timber tower.

NSW Planning and Public Spaces Minister Rob Stokes said the approvals were a significant milestone in what would be the state’s largest government-led urban renewal. “This project is a vote of confidence in the Sydney CBD and brings new employment space close to Central Station, providing easy access to jobs, homes and services,” he said.

The Atlassian tower is expected to be finished by 2026.

Dexus chair Richard Sheppard acknowledged the vote against the pay practices at the meeting with a final count of 65.77 per cent against.

Proxy houses had recommended against the report.

Mr Sheppard said remuneration decisions made by the board in fiscal 2021 focused on ensuring key executives were retained and motivated, and recognised succession planning and the “highly competitive market for talented executives”.

Dexus said extended lockdowns in Sydney and Melbourne through the September quarter did little to slow its momentum.

Dexus chief executive Darren Steinberg. Picture: John Feder

Chief executive Darren Steinberg said high vaccination rates and the road maps in place to release Australia from intermittent lockdowns had put the economy in a good position.

“Strong momentum has continued across our diversified property platform in the first quarter of FY22,” Mr Steinberg said.

“Moving forward, we will continue to deliver superior risk-adjusted returns for investors by executing on our strategic objectives.”

The start of the 2022 financial year proved busy for the office landlord, which bought funds manager APN and then teamed with Industria to buy a $1.5bn industrial portfolio.