Buyers keen for apartments
A memorandum of understanding authorising agents CBRE to respond to sales inquiries for the first two apartment buildings was signed on Tuesday.
According to the agents, demand is high for the apartments from a mix of Australian and overseas investors.
The residential towers are expected to be less controversial for the $6 billion project than the nearby planned "six-star" hotel and private casino.
On Monday, the owner of the Star casino at Pyrmont lodged a counter-bid to James Packer's proposal for a $1 billion casino and hotel at Barangaroo.
The two apartment buildings are along the Barangaroo waterfront and comprise 159 apartments, all with harbour views.
They vary in height from seven to 11 storeys and contain a mix of one, two and three-bedroom apartments, including 11 dual-level luxury loft apartments and one double-floor penthouse.
The northern building, designed by Richard Francis-Jones, includes a cloud-shaped design for the apartments and balconies at the north of the building, overlooking the new public square and harbour cove.
The southern building, designed by Andrew Andersons, includes substantial rooftop gardens and green plantings.
But property analysts have said that while the residential division is tipped to be keenly sought after, Lend Lease is still under pressure in the office component.
The team at Commonwealth Bank's global markets research said it appears Lend Lease "has made little progress on adding to the 71 per cent pre-commit at the office towers, known as C4 and C5".
These towers have been leased to Westpac, KPMG and Lend Lease at competitive rents.
"Therefore, contemplating demand, a third tower appears to be heavily reliant on at least PricewaterhouseCoopers signing," the analysts said. "Reports have suggested PWC, wanting 30,000 square metres, is looking at C3 but that would still leave 40,000 square metres to fill for the pre-commit.
"PWC's lease expiry at [Tower 2] Darling Park is at the end of 2015 but we understand it has a three-year option that is said to cost about $100 million. If Lend Lease pushed ahead with a third tower, we would imagine it may have to compensate PWC for some of the time it would leave on the table in its three-year option."
Frequently Asked Questions about this Article…
Yes. Lend Lease has started construction on the residential component at Barangaroo and is offering the harbourside apartment towers to the public off the plan, with agents CBRE authorised to respond to sales inquiries for the first two buildings.
The two waterfront apartment buildings contain 159 apartments, all with harbour views. They range from one-, two- and three‑bedroom apartments and include 11 dual‑level luxury lofts and one double‑floor penthouse, in buildings seven to 11 storeys high.
According to the authorised agents, demand for the Barangaroo apartments is high from a mix of Australian and overseas investors.
The northern building, designed by Richard Francis‑Jones, features a cloud‑shaped layout with balconies facing the new public square and harbour cove. The southern building, designed by Andrew Andersons, includes substantial rooftop gardens and green plantings.
The residential towers are part of the $6 billion Barangaroo development and are expected to be less controversial than the proposed six‑star hotel and private casino. The casino element has attracted competing bids, including a counter‑bid to James Packer's proposal.
Yes. Property analysts and Commonwealth Bank's global markets research say Lend Lease has made little progress adding to the 71% pre‑commit level at the office towers C4 and C5, leaving pressure on the office side of the development.
The office towers have been leased to Westpac, KPMG and Lend Lease at competitive rents. Analysts say a third office tower would likely rely on securing a major tenant such as PricewaterhouseCoopers (PWC) to reach full pre‑commitment.
Reports indicate PWC is considering about 30,000 square metres at C3. Even if PWC signs, around 40,000 square metres would remain to fill for pre‑commit targets. PWC's current lease at Tower 2 Darling Park expires at the end of 2015 but includes a three‑year option reportedly costing about $100 million — a factor Lend Lease may need to account for if pushing ahead with a third tower.
Call 1300 880 160
Start a chat
Schedule a call
