AdelaideNow wrote:Flinders St mixed use development secures second major tenant, meets pre-commitment requirements to commence project
Giuseppe Tauriello
February 26, 2013 12:00AM
Artist's impression of new office building at 50 Flinders Street, Adelaide, to be built by Commercial & General, and leased by People's Choice Credit Union as their new national headquarters.
PEOPLE'S Choice Credit Union will be delivered new $140 million headquarters, the project developer having secured another major tenant to anchor the building.
Adelaide-based developer Commercial & General will start negotiations with builders to complete the mixed-use project at 50 Flinders St, with works scheduled to start in July.
"We believe we've satisfied the required level of pre-commitment to commence the project," Commercial & General managing director Jamie McClurg said.
"We are working on a planning consent - we would anticipate we would get that mid-next month."
The country's second largest credit union committed to occupy 10,000sq m, or half of the new building's footprint, in 2011.
Mr McClurg would not disclose the second tenant that had committed to a further 5000sq m in the building, but it is understood the state's biggest company, Santos, is the partnering tenant.
The oil and gas producer's head office is at 60 Flinders St, and a component of its workforce is based at refurbished office space at 30 Flinders St, under a short-term lease.
It is understood those staff will relocate after the new building is completed, towards the end of 2015. About 400 Santos staff could occupy the 5000sq m of space.
"There are not too many tenants around that can underpin a single building with enough commitment," Mr McClurg said.
"And I'm confident we'll be able to secure tenants to complete the project before the development is completed in full."
Jones Lang LaSalle director Tom Budarick, who negotiated the leasing of the project, said it was good news for the Adelaide office market.
"Any large commitment, particularly one that results in new construction, will generate some positive sentiment and excitement in the market," he said.
"Negotiations remain challenging and continue to take time but the commitments to Flinders St demonstrate that there is demand for good quality space in the right locations."
The new five-star, energy-efficient building will replace People's Choice's current base, which is about 30 years old.
Mr Budarick said 50 Flinders St was particularly exciting, given the size of the development and because of its prominent location.
"We are continuing discussions with tenants and hope to have at least one further floor committed in coming months," he said.
Meanwhile, discount supermarket chain Aldi's intention to find a northern-suburbs site for its distribution centre - to support up to 50 stores across the state - has sparked the interest of Commercial & General, which holds significant land-holdings in the north.
Mr McClurg said there were few facilities in the north that would meet Aldi's requirements.
"We have plans on the drawing board for a site we own that sits between Coca-Cola, National Foods and Bickfords in the Cross Keys food precinct and that's large enough to take two operators of that size," he said.
"Certainly we'll be watching that brief and seeing if we can offer an opportunity."
Santos declined to comment on the lease deal.
Just a shame our prominant corners do not have something more imaginative in store. Also for the record, I think the new BHP building in Perth is overbearing, and completely dominates the skyline from Kings Park, and also blocks the city from the river. But as with SA I guess what BHP want...they get. Big is not always better.
