Charter Hall and BGRE Reach 95% Occupancy at Melbourne's 111 Bourke Street as AusNet, Australian Retirement Trust Sign On

Charter Hall and BGRE have secured lease agreements bringing 111 Bourke Street in Melbourne to 95% occupancy, with energy network business AusNet and superannuation fund Australian Retirement Trust committing to a combined 19,000 square metres at the East End Capital office tower. Knight Frank and Colliers acted as leasing agents on the transactions, which were announced July 28, 2026.

The leases were executed on behalf of Charter Hall (CPOF), Charter Hall's core office vehicle. The deals add to more than 43,000 square metres of leasing completed at 111 Bourke Street over the past 12 months, with only four fully fitted suites now remaining available following the practical completion of those spaces.

AusNet Takes 17,000 sqm on 10-Year Lease

AusNet, Victoria's largest diversified energy network business, has committed to approximately 17,000 square metres across the building on a 10-year lease, with occupation scheduled for late 2027. The move will consolidate AusNet's Melbourne CBD workforce into a single workspace.

"As Victoria's energy needs continue to grow, this move will help us bring our teams together to work more efficiently and deliver the investments needed to keep energy reliable and affordable for customers into the future," said AusNet CEO David Smales.

Australian Retirement Trust will lease 2,200 square metres, with expected occupancy from early 2027. Charter Hall noted the commitment represents an expansion of Australian Retirement Trust's existing partnership with the group.

"We are thrilled to welcome AusNet and Australian Retirement Trust to 111 Bourke Street," said Carmel Hourigan, Charter Hall Office CEO and Institutional Client Services. "These commitments reflect the strength of the relationships we have built with our tenant customers and the trust they place in Charter Hall as a long-term property partner. Australian Retirement Trust's decision to expand its partnership with Charter Hall, together with AusNet's commitment to 111 Bourke Street, reflects the strength of the precinct and our focus on delivering outcomes that support our customers' evolving needs."

East End Place Repositioning Drives Leasing Momentum

The 111 Bourke Street tower underwent a strategic repositioning in 2025 as part of the broader East End Place precinct, which integrates premium office accommodation with retail, wellness, flexible workspace, and end-of-trip facilities. The precinct is located at the eastern end of Melbourne's CBD.

The building is now fully electric, described as the first existing asset in Melbourne to achieve full electrification across an integrated office and retail precinct. Its base building is powered entirely by 100% renewable electricity through a long-term power purchase agreement. The asset has achieved a 6 Star Green Star Buildings (Design Review) rating.

The current leasing activity follows EY's previously announced relocation of its Melbourne workforce to the tower, scheduled for later in 2026. With the AusNet and Australian Retirement Trust commitments in place and a further flexible space transaction in progress, occupancy will reach 95%.

Miriam Patterson, Charter Hall Fund Manager for CPOF, said the results reinforce demand dynamics in the prime office segment. "These leasing outcomes reinforce the resilience of prime office assets in Melbourne's most sought-after locations. Demand continues to concentrate in high-quality precincts, with organisations increasingly prioritising location, amenity and accessibility. East End Place's position within the eastern end of the CBD continues to attract leading organisations seeking the qualities that underpin long-term leasing performance."

BGRE Cites Tenant Preference for Sustainable, Amenity-Rich Buildings

BGRE President and Co-Head of Real Estate in Australia Danny Poljak said the transactions reflect broader occupier trends playing out across Australian office markets. "We're delighted to welcome AusNet and Australian Retirement Trust to our 111 Bourke Street community. These transactions are deeply reflective of the trend we have seen playing out in major Australian markets in recent years, with occupiers preferring buildings that are well located, offer high amenities grounded in sustainability, and deliver an enhanced tenant experience."

The 95% occupancy figure places 111 Bourke Street well above prevailing vacancy levels seen across many major office markets globally, where elevated vacancy in older and non-prime stock has persisted in the post-pandemic period. The concentration of leasing demand in prime, sustainability-credentialed assets has been a consistent feature of the current office cycle.

With AusNet's 10-year lease anchoring the building's income through the mid-2030s and Australian Retirement Trust expanding its footprint from early 2027, the East End Place tower's leasing profile reflects the type of long-duration, institutionally covenanted occupancy that underpins core office investment strategies. Knight Frank and Colliers brokered both transactions.

Sources

Charter Hall – Charter Hall and BGRE secure major leasing at East End Place (July 28, 2026)