Leighton Properties and AXA to develop prime CBD site

Issue Date:  08 November 2000
Issued By:  Leighton Properties Pty Limited

Leighton Properties NSW Manager Mark Gray today announced that an agreement had been concluded with AXA Australia Property Management Limited, on behalf of AXA Australian Diversified Property Trust to develop an office tower in the air space above 383 Kent Street.

CSPC/Council approval for the development was granted in December 1998 and construction will start on 13 November. Completion of this $99 million project is expected in May 2002.

The project will see the existing 10 level carpark on Kent and Clarence Streets transformed to a fully enclosed podium supporting eleven new floors of office space. The office tower core will penetrate the existing parking levels and the impressive entry lobby will reduce the current parking of 1007 to 842 spaces.

Totalling some 17,225m2 of office accommodation and 750m2 of retail to both Kent and Sussex Streets, this latest Grade A building to complement Sydney’s skyline will have large virtually column free floor plates of some 1580m2 net with a fully secure, internally serviced core.

The carpark will remain in operation throughout most of the construction phase and will be leased by Leighton Properties from the Trust during that phase.

Some 26% of the building has already been leased. International accountants Grant Thornton, relocating from their current Market Street address, have committed to 3 levels in 383 Kent Street. The lease is for a term of 8 years. The net effective commencing rental is approximately $430/m2.

The managing partner of Grant Thornton, Mr Graham Watman said that the 383 Kent Street development gave Grant Thornton the opportunity to consolidate to a building which provided all our service and expansion requirements close to our current office. “The new location is very convenient, well liked by our staff and we have also maintained our views over Darling Harbour,” Mr Watman said.

Grant Thornton were represented by Phil Rawlinson and Peter Kempthorne of Rawlinsons CRE in the transaction. FPD Savills and CB Richard Ellis are the appointed agents on the project.

Mr Mark Gray said, “It has been a long time since the CBD has seen such a positive sentiment for commercial development. 383 Kent Street is coming to the market at a time when the CBD vacancy levels and projected new developments are at very low levels and tenant demand remains high. The initiatives taken by Leighton Properties for re-use/augmentation of existing buildings are a model for future inner city developments.”

The Development Manager for AXA, Mr Joe Curlewis said AXA was very confident that the completed building would be a valuable and worthwhile addition to the Trust’s property portfolio. He indicated the Trust was already in negotiations to lease additional space and said the strength of the Sydney Office market combined with the high quality office tower and significant provision of car parking placed the Trust in a very competitive position.

For further details contact
Mark Gray
NSW Manager
Leighton Properties Pty Limited
(02) 9925 6666