IAG has committed to a pre-lease deal for a new building in the Melbourne CBD that will bring all its operations under one roof. The Grand Central development on the corner of Bourke and William streets will house about 2000 IAG employees who are at present scattered across four city towers.

The Sydney-based insurer will occupy about 27,000sqm in the 43,000sqm 27-storey building, which will eventually be named the CGU Tower.

It’s expected to be completed by the end of 2008.

IAG Group executive Mario Pirone, who is CEO of subsidiary company CGU, says the move reiterates the group’s long-term commitment to Victoria.

“CGU has been doing business in Victoria for over 140 years,” he said. “This development heralds a new era for us and supports our goal of further building our presence in the state.”