[COM] 115 King William Street | 91m | 26lvls | Office

[mgb]

Seems this building is also 27 levels (26 above ground) 25 of strata title, 1 of lobby and cafe.

Oddly the price list I was sent only shows 24 levels + ground




mgb

[Nathan]

I noticed something of interest in the video. Anyone care to point out what I just discovered? (Hint: when it highlights the lobby section).

Plan for City Central complex in the background?

Yeah, there seems to be some kind of tower on top of the GPO building...

[Omicron]

After seeing that fly-through, I don't mind that at all. Nothing earth-shattering, but certainly not objectionable.

[dsriggs]

I noticed something of interest in the video. Anyone care to point out what I just discovered? (Hint: when it highlights the lobby section).

Plan for City Central complex in the background?

Yeah, there seems to be some kind of tower on top of the GPO building...

[AG]

That building above the GPO has been part of the plan of City Central since the plan was released a few years ago, however, it is not currently a well detailed proposal. The intent was for the building to be occupied by a hotel with the GPO redeveloped into a retail complex if I remember correctly.

[skyliner]

Correct.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[bigfish1988]

According to southaustralila.biz it is only 25 floors but still over 86m tall. Looks very sexy though. Click the below link to see October 2010 update:

http://www.southaustralia.biz/projects/ ... treet.aspx

[skyliner]

Just consulted a 36 yr old speech therapist (husband an engineer) about design, impact, location. All got an immediate OK - 'you've got to expect big buildings - after all it is a city' and many more will be built. Likes the architecture. It won't stand out as much as the city develops. Got to start somewhere with the tall ones. (BTW - the consulted identity lives in Brisbane but Adelaide born).

ADELAIDE -TOWARDS A GREATER CITY SKYLINE

[Ben]

According to todays paper add, 5 floors have sold and construction is due to start later this year.

[[Shuz]]

I thought most developments post GFC needed 70-100% precommitment before commencing construction?
5/25 floors is only 20%?

[Ben]

As this article states they don't need a large pre commitment to start. I'm hoping they do get a few more sales soon to ensure it does happen this year. Also there is only 24 levels for sale. Ground floor is lobby/cafe.

Promising news. From the Advertiser:

Start date for 25-storey office tower

SARAH MARTIN From: The Advertiser July 13, 2010 8:16PM

DEVELOPERS of King William St's newly approved office tower say they are confident of starting construction next year.
The property was approved by the State Government's Development Assessment Commission on Monday, overruling an earlier recommendation by the council's development panel to block it.

The new 115 King William St development, opposite the tram stop near the corner of Waymouth St, will comprise a 25-storey building standing 86m high, the city's sixth tallest.

Unlike most office towers currently mooted for the Adelaide market, the development is not seeking a large pre-commitment from the market in order to build, choosing instead to offer the building's smaller floor plates strata-titled.

The spokesman for the development's joint venture Brinz Holdings and PMF, Andrew Foti, said he was confident of securing tenants for the building.


"There are limited opportunities to acquire quality space of this calibre and size that will appeal to both owner occupiers and investors - typically if you wanted smaller size floor plates you are limited to C and B grade stock," he said.

"We will be going to market very soon and offering strata-titled floors for sale, and believe there is strong demand for this product." Mr Foti said he anticipated construction would take 12 to 18 months, with the building completed by late 2012.

Jones Lang LaSalle has been appointed to market the property.

"There really isn't any comparable product on the market nor is there likely to be for some time," Con Kavooris, of Jones Lang LaSalle's sales and investments team said.

More than six approved major developments are yet to be built in Adelaide at the moment, awaiting tenant pre-commitment.

[Waewick]

I thought most developments post GFC needed 70-100% precommitment before commencing construction?
5/25 floors is only 20%?

there is never an exact number behind it - you don't know what the developer is bringing to the party.

Theoretically, a developer could do a commercial property “on spec” at the moment if they had the right financial backing.

[AG]

I thought most developments post GFC needed 70-100% precommitment before commencing construction?
5/25 floors is only 20%?

there is never an exact number behind it - you don't know what the developer is bringing to the party.

Theoretically, a developer could do a commercial property “on spec” at the moment if they had the right financial backing.

What's happening in Adelaide is still more conservative than what's happening in Melbourne recently. A number of office buildings have or are about to commence construction on a speculative basis - they have not secured any tenants at all. The financing arrangement isn't just dependent on a fixed number, obviously the more pre-commitment the more likely construction finance will be approved for the developer, but as Waewick said it also depends on the available finances of the developer and the financing structure that works best for them.

[Waewick]

that is true

but that alse reflects the depth in the market on both developers able to handle that level of debt and potential tenants.

There wouldn't be many Adelaidians (in the development game) able to sit on $80-100m whilst the locate tenants and given we still live in a city where the vast majority of tenants of these spaces are Government departments the likely hood of picking a decent tenant is also difficult.

[AG]

that is true

but that alse reflects the depth in the market on both developers able to handle that level of debt and potential tenants.

There wouldn't be many Adelaidians (in the development game) able to sit on $80-100m whilst the locate tenants and given we still live in a city where the vast majority of tenants of these spaces are Government departments the likely hood of picking a decent tenant is also difficult.

It's quite possible that neither of the two parties in the joint venture for this development would've got financing approval had they decided to go at it alone.

The last point you bring up highlights how dependent Adelaide's office market is on government departments to get projects up and going. A significant chunk of City Central 1 is occupied by government departments, there's the SA Water Building as well. Most tenants in the Adelaide market are smaller firms or small operating centres of companies based interstate. There's a handful of companies based in Adelaide that have enough weight to justify a large new office building (e.g. Santos), but nowhere near as many as interstate. I do know one company that is located at 33 King William Street currently occupies 5 floors of that building, and they've recently had to take out space in Grenfell Street because of the rapidly growing Mining sector, so there are a few around.