Mr Lang Walker, Chairman of Walker Corporation has announced his intention to discontinue the sales process for its development at Collins Square, Melbourne – one of the largest mixed-use commercial and retail CBD precincts in Australia.
Mr Walker said, “Through the excellent work of UBS Real Estate Australasia we received in the first round three bids for the total portfolio and numerous expressions of interest for the individual assets. Tight yields of around 5 per cent were offered for the completed buildings”.
“It has taken Walker Corporation 12 years to bring a vision to reality - all but one tower in the development will be completed by August. Collins Square is a unique asset which would be extremely difficult to replace.
“I now believe Collins Square is an asset which we should continue to hold for the long term and as a consequence we have decided to withdraw from the formal sale campaign. We have an excellent management team in place at Collins Square and strong interest from potential tenants for the remaining space in the development”, he added.
Walker Corporation initially were looking to dispose of Collins Square to free up capital to fund its substantial development pipeline, which includes a range of exciting commercial and residential projects across the country –including the $2 billion Parramatta Square project in Sydney and the Festival Square project in Adelaide.
The company has now sourced equity funding for the Parramatta Square project, obviating the need for additional capital from the proposed sale of Collins Square.
Collins Square consists of five towers and the refurbished historic Goods Shed, as well as world class restaurants and amenities. With over 250,000 square metres of lettable area – roughly the same size as Barangaroo - Collins Square expects that more than 46,000 people will visit or work in the precinct each day.
Towers 2 and 4 have tenants taking occupation from next month. Collins Square has attracted many blue-chip tenants, including Marsh Mercer, Transurban, KPMG, Commonwealth Bank of Australia, Penguin Random House and Pearson, Maddocks, Link Group, Mott McDonald and AECOM.