AMP Capital has commenced construction on its Quay Quarter Tower at 50 Bridge Street, Sydney after securing a $900 million investment from super fund platform Rest.
Multiplex has been appointed to build the commercial tower, following months of intense contract negotiations on the 50-storey building with both Multiplex and Lendlease.
Lendlease reportedly put forward a tender that was more than $70 million over budget late last year, spurring discussions with Multiplex.
After confirming that Rest will be taking a one-third stake upon completion of the $2.7 billion project, AMP will start construction on the key commercial element in the 11,000sq m Quay Quarter precinct after securing a $900 million boost from Rest.
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Designed by Danish architects 3XN, the 200-metre-high, 50-storey tower called Quay Quarter comprises five shifting glass volumes stacked upon each other punctuated by atrium space, maximising views out to Sydney Harbour and daylight into the office floors. The tower will deliver around 90,000sq m of office space.
At the base of the tower is an urban green space and approximately 5,000sq m of lifestyle, services, food and dining retail.
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As the anchor tenant in the redeveloped Quay Quarter Tower, AMP is apparently well progressed in discussions with potential other major tenants.
In 2016, AMP Capital agreed to sell its headquarters overlooking Circular Quay to two of its unlisted funds – AMP Capital Diversified Property Fund and AMP Capital Wholesale Office Fund – for at least $430 million.
As part of that deal AMP agreed to take up a major new lease in the proposed Quay Quarter Tower.
Quay Quarter Tower forms part of the 11,000sq m Quay Quarter Sydney precinct, incorporating the office tower, 33 Alfred Street and the Young and Loftus mixed-use precinct.
Early building work has already commenced, and Quay Quarter Tower is expected to be completed in late 2021.
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In late January, AMP Capital appointed Richard Crookes Constructions to build the Loftus Lane apartments, which are located on 4,300sq m of prime real estate within the Quay Quarter precinct at Circular Quay.
Loftus Lane comprises three low-rise buildings with no more than 40 apartments in each, and each building having its own architect.
With the apartments selling out in record time, construction has commenced and is on track for completion in 2020.