Leighton plans $400m head office in North Sydney
It will be the first new development in the area for about six years with 40,000 square metres across 30 storeys.
Leighton is currently based at St Leonards and has signed a lease as the anchor tenant for 76 per cent of the office tower.
Located in the old Norberry Terrace, at 177 Pacific Highway and Berry Street, Leighton has agreed terms, as yet undisclosed, to buy the asset from the private developer Winten Property. Leighton would then look to onsell the asset through agents Jones Lang LaSalle and CBRE.
The deal comes as the north shore office market labours under a vacancy rate of 11.2 per cent, with North Sydney sitting at 10.8 per cent, although the vacancy rate is only at 2.8 per cent for prime office assets.
During the first half of this year, some offices in the area were earmarked for conversion into residential towers.
The managing director of Leighton Properties, Mark Gray, said the project fitted into the group's core competency of CBD commercial development. He said the remaining 10,000 square metres in the tower would be available to other corporates. "We have developed a number of the prime North Sydney towers in the past and we feel the area is worthy of a new development of this kind."
The designer is Bates Smart.
The chief executive of Leighton, Hamish Tyrwhitt, said the development would consolidate 11 buildings occupied by Leighton which were of differing quality, density, fitout and age.
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Leighton Properties plans a $400 million, 30-storey office skyscraper in North Sydney with about 40,000 square metres of space. The tower will become Leighton’s head office from early 2016 and is the first new development in the area for roughly six years.
The development is planned for the old Norberry Terrace site at 177 Pacific Highway and Berry Street in North Sydney.
Leighton has signed a lease as the anchor tenant for 76 per cent of the office tower, leaving about 10,000 square metres available for other occupiers.
Leighton has agreed terms (price undisclosed) to buy the asset from private developer Winten Property. Leighton intends to onsell the completed asset through agents Jones Lang LaSalle (JLL) and CBRE.
The north shore office market has a vacancy rate of 11.2 per cent, with North Sydney at about 10.8 per cent. For prime office assets in the area the vacancy rate is much lower, around 2.8 per cent.
The article notes that some offices in the area were earmarked for conversion into residential towers during the first half of the year, signalling some change in office supply and use in the local market.
The tower’s designer is Bates Smart. Leighton’s managing director Mark Gray said the project fits the group’s core competency of CBD commercial development and builds on their experience developing prime North Sydney towers.
Leighton’s chief executive Hamish Tyrwhitt said the development would consolidate 11 buildings currently occupied by Leighton, which differ in quality, density, fitout and age, into a single new head office.
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