[PRO] Keswick World Park (incl. Emergency Services HQ)

[rogue]

Dont expect things to progress from here for a while. I am lead to believe it has been placed on hold.

[Ben]

Dont expect things to progress from here for a while. I am lead to believe it has been placed on hold.

Not sure how you would explain all the construction workers on site this morning...

[Norman]

Hey guys, sorry I haven't got any photos yet, I don't have my camera at the moment, but will try to get some shots on Wednesday.

[rogue]

Dont expect things to progress from here for a while. I am lead to believe it has been placed on hold.

Not sure how you would explain all the construction workers on site this morning...

Trust me. Once site works have finished, there wont be much happening.

[Norman]

Well, not much to see, but here are the pictures...

[Professor]

Nothing has moved on this site for a month, no workers and no progress since the latest photos (above).

Is it because of contamination in the soil? That should have been sorted out and remedial work done before now.

It looks more serious than that, maybe the contract has stalled for some reason.

[rogue]

An investor has withdrawn support for this project which has thrown a massive spanner in the works. There are currently no $$$'s to push it along.

[Omicron]

An investor has withdrawn support for this project which has thrown a massive spanner in the works. There are currently no $$$'s to push it along.

Here are some more, then:

$$$$$$$$$$$

[how_good_is_he]

For a $170m development you wouldnt think an investor could just pull out so late in the game..surely contracts/leases/finance all negotiated & signed. Rogue, do you see lawsuits and no development for years or can the remaining team pull it together? Any reason why the investor pulled out and is the major tenant [Coffey] still onboard?

[UrbanSG]

Building A is going ahead as reported in the Commercial section of todays paper. It has a tenant pre-commitment which I think has been discussed previously in this thread. The other two buildings are on hold due to decreased tenant demand. This despite Adelaide's office vacany rate continuing to fall.

[raulduke]

actually, i understand somebody forgot to lodge an approval with the LGA

[UrbanSG]

Here is the article from adelaidenow:

Worldpark delayed by slowing demand
RUSSELL EMMERSON

July 21, 2008 11:30pm
LISTED developer Axiom Properties has delayed part of its $175 million office development, Worldpark:01, because of slowing tenant demand.

The company originally intended to build two of the Keswick site's three buildings immediately, but SA general manager Paul Mouvray said the rollout would ``be a bit slower than before''.

"Everything has slowed down in the Adelaide market,'' he said. ``We are just a little bit uncomfortable with taking too much risk."

"Tenants who are relocating are just sitting on their hands trying to work out what the market is doing and a lot of businesses are slowing down. That's making relocation decisions tougher.''

The first stage of the water-neutral development will still be anchored by engineering services firm Coffey International, which has signed up for 7000sqm of Building A's 11,000sqm.

Mr Mouvray said Axiom was talking with three companies about leasing the remainder of Building A.

He said Axiom was still negotiating with other companies regarding the leases for the remaining buildings.

"Building B and building C will follow shortly but they will be based on tenant demand,'' he said. ``But stage one (Building A) will more than pay for the land - that was part of the strategy.''

The Melbourne WorldPark project, which is based on the Adelaide concept and was approved by shareholders at their general meeting last month, was still on track to be started by the end of this year, Mr Mouvray said.

The company announced in April it was negotiating a further 6.3ha industrial lease near its Gepps Cross Home Maker Centre, and was also negotiating a 22ha industrial lease.

[Queen Anne]

I might be naive, and I admit I am no expert in these matters, but has Adelaide just been snubbed? Last month shareholders approve the Melbourne version of WorldPark and at around the same time an investor pulls out of the Adelaide version? And now ours, which was the first to be proposed, is looking shaky

[AtD]

I might be naive, and I admit I am no expert in these matters, but has Adelaide just been snubbed? Last month shareholders approve the Melbourne version of WorldPark and at around the same time an investor pulls out of the Adelaide version? And now ours, which was the first to be proposed, is looking shaky

Probably more to do with the location of this development, being outside the core.

[Wayno]

I might be naive, and I admit I am no expert in these matters, but has Adelaide just been snubbed? Last month shareholders approve the Melbourne version of WorldPark and at around the same time an investor pulls out of the Adelaide version? And now ours, which was the first to be proposed, is looking shaky

being snubbed implies some sort of pot, or subtext against Adelaide. I'm sure it is just a financial reality for this specific project (that is, the developer must obtain tenants prior to construction commencing).