Chapter 2 The Proposed Works

Purpose

2.1                   ASIC submitted that the purpose of the proposed work is to relocate its Melbourne staff and business requirements to new premises in 120 Collins Street.  This will allow ASIC to ensure that its business needs are met for the next 10.5 years at a minimum.[1]

Need

2.2                   ASIC has occupied 8,810 square metres of office space at 485 La Trobe Street, Melbourne, since its inception in 1991.  According to ASIC, its current fit-out is dated, inefficient and ergonomically poor.  The proposed relocation of the agency has been chiefly motivated by:

n  the condition of the fit-out and base-building, which are functionally obsolete and inadequate to meet the needs of staff and business operations;[2] and

n  expiry of the current lease in December 2006.[3]

2.3                   Advantages of the proposed new premise at 120 Collins Street are that:

n   t will provide a level of fit-out comparable to other ASIC premises; and

n  it is located amongst the external stakeholders that ASIC deals with on a daily basis.[4]

Scope

2.4                   ASIC intends to lease levels 24-30 and ground floor retail space at 120 Collins Street is for a period of 10 years and six months.[5]  The lease will provide 8,168 square metres of office space on seven contiguous floors, with 175.3 square metres of ground floor space.[6]

2.5                   ASIC’s proposal includes the procurement and execution of architectural design and documentation, and fit-out.[7]

2.6                   ASIC proposes that the office design will:

n  allow for a collaborative working environment within and across directorates;

n  deliver the capacity for growth;

n  readily accommodate change;

n  enable free-flowing communication; and

n   allow for the speedy utilisation and redirection of technology and resources.[8]

2.7                   Office fit-out will include:

n  construction of a Service Centre on the ground floor;

n  security controlled access to ASIC’s leased floors;

n  a reception area;

n  investigation evidence rooms;

n  meeting rooms;

n  storage facilities;

n  a computer room;

n  a first aid room; and

n  utilities and a kitchen on each floor.[9]

Selection Process

2.8                   ASIC advertised for Expressions of Interest (EOI) to lease suitable office space in the Melbourne CBD in November 2004.  Seventeen submissions were received, most of which were discounted as being unsuitable on the basis of:

n  location;

n  building profile;

n  floor-plate size;

n  configuration;

n  staff amenity and accessibility; or

n  cost.[10]

2.9                   In mid-2005, feasibility studies were carried out on five properties, with two properties being identified for detailed exploration.[11]  120 Collins Street was identified as the most viable option.  A deal was agreed to in November 2005.  Ministerial approval was received on 12 January 2006.[12]

2.10               The selection of 120 Collins Street was based upon a number of financial and operational criteria, which are described in detail at paragraph 51 of the submission.

Project Delivery

2.11               ASIC anticipates that the project will be completed over a 5-month period following parliamentary approval, and expects that relocation will take place in late September 2006.[13]

Cost

2.12               The estimated cost of the proposed fit-out is $9.85 million including:

n  fit-out;

n  workstations;

n  IT and communications infrastructure;

n  security;

n  professional fees;

n  contingencies; and

n  GST.[14]

2.13               ASIC anticipates re-using some of the items from the current tenancy including:

n  whitegoods;

n  some audio visual and technical equipment; and

n  some loose furniture such as chairs and tables.[15]

2.14               ASIC has negotiated a $6.5 million lease incentive with Investa Property Group.[16]