Overview
Afterpay is an international payments platform, built to enable financial wellness for the next generation of shoppers. Consumers receive products immediately, pay in four interest-free instalments and are rewarded for paying on time. With no credit checks, no interest, and no catch, we empower customers to pay in a financially sustainable way. Afterpay is a movement in which everyone wins - shoppers, retailers and society.
Afterpay is offered by over 55,000 of the world’s best retailers and has more than 10 million active customers globally. The service is currently available in Australia, New Zealand, the United States, the UK, Canada and Europe (Spain/France/Italy/Portugal)
Our Engagement
Franklin Shanks was engaged to assess the Melbourne office market and source suitable accommodation for Afterpay’s new Melbourne HQ. Afterpay were across two sites and were looking to consolidate their operation. Afterpay had also introduced a Hybrid Workplace model allowing multiple team members to work from home as well as the office.
The Brief
Afterpay initially required c.3,000-4,000sqm of A Grade office space within the Melbourne CBD. Large inter-connected floors were a key driver within an A-Grade building offering quality staff amenity in an accessible location. Outside fresh air via external terraces was also a high priority. Afterpay were looking to create large open spaces with multiple work and meeting zones, cantered around large areas for special events, functions and all-hands meetings.
The Challenge
The Melbourne office market had low to moderate A-Grade and Premium vacancy, with a spread of opportunities available for the business. The key was large useable and efficient floor plates also providing outdoor spaces and the ability to interconnect floorplates. A side core modern A-Grade building close to their current Collins Street location was the main challenge.
The Solution
After a long due diligence of the market and having technically reviewed and test fitted a number of floor plates, Afterpay focussed on GPT’s Queen & Collins Tower (ex 100 Queen Street) which was under construction, undergoing a back to base refurbishment, linking all existing low-rise buildings on Collins and Queen Street to the tower, providing Afterpay an opportunity to secure 4 large low-rise podium floors allowing them to consolidate and integrate their business in a stunning new workplace environment.
The Outcome
The overall deal both financial and non-financial was an outstanding result for Afterpay. A five-year lease commitment allowed a high level of landlord capital towards their fitout and a lease structure that provided for expansion within the tower and adjoining Collins Street building as the business grew. There was also a high level of additional landlord capital towards further base building upgrades (voids and façade works) and contributions to tenant fitout.
The result provided Afterpay with flex space, expansion rights, option terms, attractive face rent and escalation structure, and caps on limited opex and future capex liabilities. Additional business lounge/third spaces were made available plus basement parking and signage right options.
“Afterpay would like to thank Franklin Shanks for their partnership and support under the Agreement. Franklin Shanks has been an important partner contributing to the growth and success of Afterpay and the team wishes Franklin Shanks every success in the future”
Tim Halpin | Director, Property & Facilities
For assistance with your lease negotiations, please contact Scott Berriman on 0416 122 233.