Dexus has agreed to develop the A$1.4bn (€869m) headquarters in central Sydney for Australian-based global tech company Atlassian.

The Australian real estate investment trust has left open the option of bringing third-party capital into the project prior to completion.

Dexus will develop the 40-level hybrid timber office tower with retail amenities and accommodation space at its base. Construction is expected to begin early next year and is due to be completed in early 2026 with Atlassian taking a 15-year lease.

Dexus will act as development manager and take responsibility for delivering the project, will fund the project and will retain an equity interest in the asset with Atlassian.

Darren Steinberg, Dexus CEO, said: “We look forward to welcoming Atlassian onto our platform as a new customer and co-owner and building out our developments within the Tech Central precinct.

Ross Du Vernet, Dexus CIO, said the acquisition of the proposed Atlassian headquarters increased the size of the groups’ “city-shaping” development pipeline and would provide good risk-adjusted returns.

“The exciting sustainability outcomes and initiatives championed at this development are consistent with our ambitions, and will enable us to leverage this innovation across our broader platform,” said DuVernet.

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