Leighton Properties sell Perth's Kings Square to Dexus for $434.8 million


Leighton Properties has entered into an agreement to sell three commercial buildings planned within the Kings Square mixed-use development in Perth for $434.8 million.

The sale will be the largest commercial property pre-sale in Western Australia.

Australian real estate groups DEXUS Property Group and DEXUS Wholesale Property Fund have agreed to purchase towers KS1, KS2 and KS3, which will feature 52,781sqm of office and retail space.

The transaction is subject to a number of approvals.

Leighton Properties also announced two anchor tenancies within the Kings Square development.

Energy giant Shell Australia has signed in KS2, and John Holland, a member of the Leighton Group, will relocate its Western Australian headquarters to Kings Square, with a 5,360sqm tenancy.

KS1, on the corner of King and Wellington Streets, will have 23,156sqm of tenancy space across 19 levels. The 11-level KS2 tower has a further 20,440sqm of space.

The third tower, KS3 will have 9,185sqm of commercial and retail space over nine levels and will include childcare facilities, shops, bicycle amenities and a gym.

Located in the heart of Perth’s CBD, Kings Square forms part of the $4 billion Perth City Link project initiated by the State Government, the City of Perth and the Federal Government.

The project aims to reinvigorate the CBD and draw billions of investment dollars into Perth through a mix of new transit, commercial and retail zones, public spaces and residential opportunities.

According to Leighton Properties Managing Director Mark Gray, Kings Square will make a significant contribution to Perth’s CBD and lead the way in broadening and revitalizing the city.

“Kings Square is an excellent fit with our vision of developing high quality, sustainable buildings in CBD areas and the high profile business interest demonstrates the outstanding calibre of this project,” Mr Gray said.

“Our participation in Kings Square reflects the Leighton Group’s broader strategy to leverage global trends towards urbanization and the large infrastructure, commercial and residential development requirements that stem from it.

“Leighton Properties’ newly established business unit Group Property Services will centrally manage the property and office accommodation requirements of the entire Leighton Group and we are pleased to be able to announce John Holland as a tenant in Kings Square. We are also thrilled that we are able to offer a total property solution to Shell, a major Leighton Group client,” Mr Gray said.

Shell Australia Country Chair Ann Pickard said Shell was attracted to the project by the high quality of the amenity and the central location.

“Shell is investing more than $30 billion in Australia over the next five years, which includes our first Floating LNG project, Prelude,” Ms. Pickard said.

“The fantastic facilities and other attributes of Kings Square will be an important part of our plans to meet the needs of our growing team as we develop our exciting portfolio of projects,” she said.

The Kings Square precinct will also include a further two commercial towers and two residential blocks.

Leighton Group contractors, John Holland and Broad Construction Services, a subsidiary of Leighton Construction, will undertake construction on the development which is set to commence mid-2013. Completion of all three buildings – KS1, KS2 and KS3 – is expected in mid-2015.

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