Federal government's 'London Quarter' project expected to cost $150m for new Education, Workplace Relation department offices

The Department of Education, along with the Department of Employment and Workplace Relations, will move 400 metres from their existing office on Marcus Clarke Street to the London Circuit site in mid-to-late 2026 after securing a 15-year deal with a major development company.

Space will also be set aside for the Australian Electoral Commission, which will have the ability to surge staffing in the lead up to federal elections, according a recent department submission to the parliamentary public works committee.

The new site, dubbed the "London Quarter", will have 11 floors, space for retail on its ground floor and end-of-trip facilities across its 70,000 square metres.

But it's expected the fresh build will cost $149.3 million, or more than $2000 per square metre.

The multi-million dollar deal was struck between the federal government and Sydney development company Walker Corporation, which was responsible for developing Sydney's King Street Wharf precinct.

Around 650 parking spaces will be built underground for public servants working in the new office while an extra 200 spaces will be reserved for the public.

READ MORE:

In its submission to the committee, the Employment Department said the building of the new office would boost the local economy.

"The development of London Quarter will have a positive impact on the local community," the submission read.

"Currently, the land is underutilised as an on-grade carpark. The additional office space is consistent with the aim of ACT government to increase the amount of employment in the region and stimulate business activity."

The ACT government flagged in late September it was in the final stages of selling the block of land, known as Block 40, Section 100 City, after it was first advertised for sale in February last year.

The site is currently used as a car park for the ACT Supreme Court and Melbourne Building businesses.

The departments' commitment to remain in Canberra's CBD by the end of the decade stands in contrast to recent announcements marking an apparent exodus to south of the lake.

The Albanese's first budget in October revealed a major national security precinct will be built by 2028 on State Circle and is expected to house around 5000 staff.

The projected cost of the precinct's construction remains unknown due to national security and commercial sensitivities but industry experts predict it will easily surpass the $1 billion mark.

The Infrastructure Department, which was tipped to move to One City Hill on Vernon Circle, has also expressed interest in taking up Barton real estate in a recent approach to market.

In September, Australian Taxation Office confirmed it was leaving behind its two Civic offices for a move to Barton in 2025.