Kings Square Buildings Sold
Andrew Borger 6 May 2013
Leighton Properties has entered into an agreement to sell three commercial buildings planned within the Kings Square mixed-use development in Perth for $434.8 million, the largest commercial property pre-sale in Western Australia.
Australian real estate groups DEXUS Property Group and DEXUS Wholesale Property Fund have entered into an agreement to purchase towers KS1, KS2 and KS3. The transaction is subject to a number of approvals.
The towers will have 52,781 sqm of office and retail space. Construction will commence in mid-2013, undertaken by John Holland and Broad Construction Services, a 100% owned subsidiary of Leighton Contractors.
Leighton Properties also announces the signing of two anchor tenancies within the Kings Square development. Energy giant Shell Australia has signed in KS2 and John Holland, a member of the Leighton Group, will relocate its Western Australian headquarters to Kings Square with a 5,360sqm tenancy.
Leighton Holdings Chief Executive Officer Hamish Tyrwhitt said the announcement demonstrated the successful partnering of three of Leighton’s companies – Leighton Properties, John Holland and Leighton Contractors’ subsidiary Broad – on this transformational project for Perth.
“These transactions highlight the core competencies of the Leighton Group of companies and demonstrate how our businesses are collaborating to drive innovative solutions and value for clients, strategic partners and shareholders. Importantly, this transaction is a tangible example of our strategy to pre-sell large commercial developments and efficiently use our capital,” Mr Tyrwhitt said.
Leighton Properties Managing Director Mark Gray said Kings Square, which forms part of the $4 billion Perth City Link project initiated by the State Government, the City of Perth and the Federal Government, would make a significant contribution to Perth’s CBD and lead the way in broadening and revitalizing the city.
“Kings Square is an excellent fit with our vision of developing high quality, sustainable buildings in CBD areas and the high profile business interest demonstrates the outstanding calibre of this project,” Mr Gray said.
“To achieve this pre-sale and these pre-tenancy commitments is testament to the quality of a project that is a benchmark in design and sustainability for CBD development. Our participation in Kings Square reflects the Leighton Group’s broader strategy to leverage global trends towards urbanization and the large infrastructure, commercial and residential development requirements that stem from it”.
“Leighton Properties’ newly established business unit Group Property Services will centrally manage the property and office accommodation requirements of the entire Leighton Group and we are pleased to be able to announce John Holland as a tenant in Kings Square. We are also thrilled that we are able to offer a total property solution to Shell, a major Leighton Group client.” Mr. Gray said
Shell Australia Country Chair Ann Pickard said Shell was attracted to the project by the high quality of the amenity and the central location.
“Shell is investing more than $30 billion in Australia over the next five years, which includes our first Floating LNG project, Prelude, ”Ms Pickard said.
“The fantastic facilities and other attributes of Kings Square will be an important part of our plans to meet the needs of our growing team as we develop our exciting portfolio of projects,” she said.
In addition to the three commercial and retail towers, the Kings Square precinct will include a further two commercial towers and two residential blocks. Construction will be undertaken by Leighton Group contractors - John Holland and Leighton Contractors’ subsidiary Broad. Completion of all three buildings - KS1, KS2 and KS3 is expected in mid 2015.
KS1, on the corner of King and Wellington Streets, will have 23,156sqm of tenancy space across 19 levels. The 11-level KS2 tower has a further 20,440sqm of space; and the third tower, KS3 will have 9,185 sqm of commercial and retail space over nine levels and includes childcare facilities, shops, bicycle amenities and a gym.
These transactions were facilitated by Simon Storry and Paul Noonan from Jones Lang LaSalle and Richard Butler from CBRE.
For more information
National Head of Commercial
Phone+61 7 3370 4700
Email Andrew Borger