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BHP commits to Charter Hall’s Adelaide GPO Exchange office tower
Charter Hall Group (Charter Hall or the Group) today confirmed that its $3.7 billion wholesale fund Charter Hall Prime Office Fund (CPOF) has finalised a second long-term lease at its $250 million Adelaide GPO Exchange development, with BHP. The lease takes the new office tower’s committed Net Lettable Area (NLA) to more than 90%, 18 months from practical completion.
Construction commenced in September 2017 on the GPO Exchange, a new A Grade commercial office tower in the heart of the Adelaide CBD, following the announcement of a 12 year pre-lease commitment over approximately 50% of the building by the SA Attorney General’s Department. The new 10-year lease to BHP covers approximately 10,000sqm or more than 40% of NLA and includes building naming rights that will see BHP’s name again light up the Adelaide CBD skyline.
Premier Steven Marshall welcomed today’s announcement and said that the State Liberal Government is taking an unashamedly pro-business approach in its efforts to reinvigorate the South Australian economy and generate private sector jobs.
“Today’s announcement that BHP, one of the world’s largest mining companies, has made a ten-year commitment to its commercial operations in South Australia is positive news, and highlights a renewed sense of long term optimism in our economy,” said Premier Marshall.
“I am determined to ensure that South Australia is globally recognised as an attractive place to invest.”
The 24,500sqm GPO Exchange project comprises 19 floors of PCA A-Grade commercial office space, a new ground floor foyer, club style end of trip facilities and 71 secure car parks. As part of the GPO Exchange project, the heritage listed Telephone Exchange Building will be refurbished and upgraded providing additional boutique office/retail accommodation.
Charter Hall’s Office CEO, Adrian Taylor said: “We are proud to continue our partnership with BHP who have been a long term tenant customer at our 171 Collins Street building in Melbourne. The commitment of both BHP and the SA Attorney General’s Department is a strong endorsement of the quality of this technologically advanced development and demonstrates our commitment to collaborate with our customers to achieve great workspace experiences.”
Designed by renowned architects, Hassell and Fitzpatrick & Partners, the proposed development will be completed in two distinct stages, the first stage which includes the larger GPO Exchange and the historic Telegraph Exchange building.
Charter Hall’s Head of Office Development, Andrew Borger said: “We aim to provide our tenant customers with an exceptional workplace experience and at GPO Exchange we are creating a quality, modern and technologically advanced office building not seen in the Adelaide market before.
“These features will see us develop a high-quality asset that will exceed the expectations of our tenant customers and the community and create an environment where our tenants and their people are proud to work,” Mr Borger added.
The South Australian Government (“DAC”) Planning Authority provided development Consent for the revitalised $250 million GPO Exchange precinct in mid-2015. The site is located between King William Street and the Charter Hall managed ATO building on Franklin Street.
CPOF Fund Manager, Matthew Brown said: “This is a major milestone for the fund and increases our exposure to another high quality ASX top 50 tenant on a long-term lease. To reach a point where the project is more than 90% leased approximately 18 months prior to practical completion is an outstanding example of Charter Hall’s project delivery capability and furthers enhances our credentials as one of Australia’s top performing wholesale funds, according to the recent IPD index”.
Practical completion of this project is scheduled to occur in Q3 2019.