[COM] 374-400 King William Street | 47m | 11lvls | Office

[Norman]

What an impact a small building like this can do for the area!

[joshzxzx]

What an impact a small building like this can do for the area!

You call that small??

[AtD]

You call that small??

About 1/3 the height of Westpac, so, yes.

[skyliner]

But 2/3rds of the block long with 20 000sq m.- big impact in that area. BTW - what is the floor area of westpac bldg?

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[Fargo]

I've just been looking at some of the marble being fitted and to me it looks as if it will end at the base of the 4th floor. I think the 4th floor has an external walkway in front of recessed windows and a rooftop balcony at the nothern end. Then the floors above that, have the windows on the external perimeter of the building (the window supports from floor 5 up suggest this) with the northern end shorter than the first 3 floors (creating the rooftop balcony on the 4th).

[Ben]

Sorry about the glare. Not much more stonework after this week. Mainly Glass and internals left:

[UrbanSG]

Pic taken today:

[skyliner]

Starting to look more stylish with the marble - anyone know if it is engraved or just a smooth glassy finish. Will complement the upper glass levels to produce a better than average bldg - perhaps the boxy element the only ordinary aspect of the whole thing. It appears that cantilevers surround the bldg which will break up the sheer wall effect that high rise can have.

ADELAIDE - TOWARDS A GREAER CITY SKYLINE

[ghs]

There was an article in the paper today saying that this one might stall due to lack
of tennants.

[frank1]

There was an article in the paper today saying that this one might stall due to lack
of tennants.

I thought they had the min number to construct this.......it would really suck if it stalled now, especially considering the way it looks.

[Ben]

There was an article in the paper today saying that this one might stall due to lack
of tennants.

This won't stall it is 60% complete and I know of companies which will be moving in in December. Are you sure it was in relation to this building?

[UrbanSG]

Yes the article referred to this building but it was a complete 'typical Advertiser' beat up of an article.

It stated the building is almost 40% leased and that this was not enough to gain financing. Yes that is true for a building that wishes to commence construction today but not one already under construction.

The leasing agent confirmed the building is proceeding and that by mid-year they expect to have it 60% leased and close to 100% near completion.

Basically because the developer would not return the paper's calls and the bank would not comment (it is up to their client not them) the Advertiser believes something is wrong with the project. Typical poor journalism.

The leasing agent suggested other developers are spreading rumors to try and undermine the project for their own gain. Now that I totally believe considering the current market.

On a side note another article in the paper yesterday said Adelaide's office vacany rate has increased to 4.5% thanks to a large amount of sub-lease space entering the market as businesses downsize. I'm guessing we will see more of this in the near future.

[loud]

I'm not saying this building is or isn't going to stall but...

It does have a long, long way to go before it is complete!

Where is the formwork for fire escapes?
Where is the formwork for lifts and lift run off's?
Where is all of the expensive plant and machinery, come to think of it, where is the plant room?
Internally, not much work has been done, no formwork for partitioning, no ceilings, no evidence of plumbing, electrical work, etc.
The leasing agents say that the building is currently sitting at 40% pre-commitment - but it is also reported that a significant portion of that is subject to back-out clauses.
The leasing agents can only "expect" that it will be at 60% by mid-year (which means achieving 20% in roughly 2 months!) They cannot guarantee this, and no financer is going to take an educated guess from an agent, they will need facts.
The leasing agents "expect" it to be 100% leased near completion - wow what a statement! In this market the only way this building is going to get completed is if they can obtain 100% commitment (or near to!)

Cash flow - given the developer's main source of cash flow is derived from the construction industry, they must be really hurting right now, considering how much everything has slowed down... I reckon their financier would be getting pretty nervous about forking over any more money!

There are already reports from around the globe and Australia about distressed developments, there is no reason why this wont be another one!

[citybangbang]

I agree with you - if it is on rolling finance then additional finance is given out as leasing commitment increases - therefore it is quite possible the building will not be able to secure final finance to complete the building. This as happened quite a lot with residential developments in NSW - lots of projects have started construction (often with a fair chunk of finance from the developer) but are never completed.

[bm7500]

A nice new shiny Completed building is much easier to lease than an unfinished one. As long as finiancing doesn't become an issue for them, this should one should hopefully be seen through to completion this year.