K-REIT – BT

K-Reit’s Aussie tower gets anchor tenant

K-Reit Asia’s 50 per cent-owned 8 Chifley Square – a premium office tower that is under construction in Sydney – has found its first anchor tenant for 40 per cent of its net lettable area.

The office, whose development is due for completion in the third quarter of 2013, is located in the heart of Sydney’s central business district, at the junction of Hunter Street and Elizabeth Street. The other 50 per cent owner is Mirvac Property Trust, a member of the Mirvac Group.

The building will have an estimated 205,700 square feet of net lettable area.

The tenant, Australian law firm Corrs Chamber Westgarth, has pre-committed to about 87,000 square feet of space for a 12-year term, over levels nine to 18 of the 30-storey building.

Ng Hsueh Ling, chief executive of K-Reit Asia Management, said: ‘The strong pre-commitment level affirms our positive sentiments on the Australian office market. We anticipate healthy demand for the remaining space.’

The building features a ‘village’ concept where tenants can lease one to three floors of contiguous office spaces which are interconnected and improve interactivity between its occupants. It will also have 36 car park lots and 156 bicycle lots across two basement levels.

K-Reit Asia, which is sponsored by Keppel Land Limited, has an asset size of about $6 billion, comprising eight commercial properties.

In Australia, K-Reit Asia also owns a 50 per cent interest in 275 George Street in Brisbane, and an office tower at 77 King Street in Sydney.

In Singapore, K-Reit Asia owns Bugis Junction Towers, a one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall, an 87.5 per cent interest in Ocean Financial Centre, a one-third interest in One Raffles Quay and 92.8 per cent of the strata area in Prudential Tower.