Sensational-Adelaide.com

bm7500 wrote:Can the approved plans be sold with the site?

Wave tower site up for sale
20 FEB 09 @ 12:01PM BY ADAM TODD

THE landmark $100 million “wave" office tower development could be Adelaide’s first high-profile casualty of the global financial crisis.

Owner/developer Lilly Nominees is selling the 3000sq m Currie St site, despite having development approval for the 31-storey building, which would be Adelaide’s biggest office tower.

Colliers International is handling the sale and associate director Ian Thomas told the City Messenger the owner wanted to “pursue other opportunities”.

He said the development approval was valid until September and it would be up to the new owner whether they pursued the “wave” tower.

However Property Council state director Nathan Paine said it was unlikely the development would go ahead in the current economic environment.

“The issue is in the current market that finance is hard to obtain and to get finance the agencies or financiers are looking for (tenancy) pre-commitments of up to 70 per cent,” he said.

“That was quite a large building and so the pre-commitment requirements would be quite significant at a time when there really isn’t significant numbers of new tenants entering the market.

“I wouldn’t be expecting to see that building with that design coming out of the ground for the next year or two.”

The futuristic glass tower was touted as an instant landmark set to change the city’s skyline when it was announced in April 2007.

It received development approval from Adelaide City Council in February last year.

At 123m tall, it would be Adelaide’s second tallest building, behind Westpac House (135m).

However, with 46,000sq m of office space, it would be one-and-a-half times the size of Westpac House, with room for 3000 workers.

The development also includes parking, a gym, pool, creche and restaurant.

The site currently has six smaller buildings, including an Art Deco apartment block and a doctors’ surgery.

It is expected to fetch about $17 million.

Crisis ends city's glass tower

RENATO CASTELLO
February 22, 2009 12:30am

PLANS to build a striking glass office tower in the heart of the city have been shattered.

Developer Lily Nominees Pty Ltd is selling the site of its planned 123m Currie St tower – dubbed the Heart of Glass – as it is unable to secure a major development partner and head tenant.

The $100 million, 31-level tower, which would have been Adelaide's second-tallest structure behind the Westpac building, received overwhelming public support when the Sunday Mail revealed its stunning design in April 2007.

Designed by South Australian architects Tectvs, it would have had up to 40,000 sq m of office space for more than 2000 employees, a 25m-lap swimming pool and a striking cantilevered facade.

Adelaide City Council approved the project, at 22 Currie St, in September 2007, but the development has stalled in the wake of the global financial crisis that has caused a major slowdown in the commercial property sector.

The downturn has seen banks drastically cut the amount of money they will lend for major commercial buildings. They also now require developers to secure 70 per cent occupancy before they will finance any construction, compared with 30 per cent a year ago.

Lily Nominees director Don Wake said he had been negotiating since last August with a major Australian development consortium to buy the site, but it had withdrawn.

"First they were going to buy the site but a few things changed in their company," he said.

"There's a lot of private buyers around and we might just get one. I've had a lot of people stuff me around so I thought I'd just put it on the market and see what the market says. We might get overseas buyers and the vacancy rates in Adelaide are still low."

The site is a 2958 sq m parcel of land facing Currie and Peel streets and Gilbert Place, opposite the Westpac building.

Mr Wake said he believed a development would happen on the site "one day" but might not be for another four or five years.

Selling agent Colliers International associate director Ian Thomas said the land was a rarity given its location.

Property Council of SA president Nathan Paine said the global credit crunch had lead to a slowdown in commercial property.

"With the tightening in the ability to get finance . . . developers need to put in more equity than they have in the past," he said.

"If you're looking to build a 30,000 sq m building you now need a pre-commitment from tenants to sell 70 per cent (of space) to start construction. But as we move out of the global crisis we will see that move back to 30 per cent."

He said Adelaide had Australia's second tightest office market with 3.3 per cent vacancy meaning there was demand for new buildings.

Shuz wrote:To be honest, I don't see this one going ahead at all.