[CAN] 20-22 Currie St | 123m | 31lvls | Office

[Omicron]

Is anyone really surprised?

[YokohamaBoy]

So this offically dead?

[bm7500]

Can the approved plans be sold with the site?

[skyliner]

What a pity - a signature bldg too! Bit like what I suspect of Spire and the so called 30 floor bldg of city central (Near GPO - had a memory lapse). BUT.. we have the least office space available - as a percentage of the total - of any of the 5 main capitals. This would hint at office bldg still being a possibility overall.

Will have to wait and see what comes out of the sale - hopefully not a car park.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[Will]

Can the approved plans be sold with the site?

Yes plans can be sold with the site, however to be honest in these economic times it is very unlikely such a project would come to fruition.

So I think its safe to say that we can begin planning the funeral service of this one.

[YokohamaBoy]

Perhaps we should start by removing this building from SA's banner?

[AtD]

There was an ad for this in Tuesday's AFR. The plans and DA approval are up for sale with the site.

http://www.colliers.com.au/5500927

[joshzxzx]

The sale of this property can be looked at in many differnt ways.

Pros...
- buyer of the property may have higher accses to funds, which could enable the building to begin construction ready for the next boom.


Cons...
- buyer may not like the proposed building and may elect to build a smaller and less attractive building.. (which is often the case)


Thats pretty much all that i could come up with, feel free to add more....

[The Proboscis Monkey]

From last week's City Messenger:
http://city-messenger.whereilive.com.au ... -for-sale/

Wave tower site up for sale
20 FEB 09 @ 12:01PM BY ADAM TODD

THE landmark $100 million “wave" office tower development could be Adelaide’s first high-profile casualty of the global financial crisis.

Owner/developer Lilly Nominees is selling the 3000sq m Currie St site, despite having development approval for the 31-storey building, which would be Adelaide’s biggest office tower.

Colliers International is handling the sale and associate director Ian Thomas told the City Messenger the owner wanted to “pursue other opportunities”.

He said the development approval was valid until September and it would be up to the new owner whether they pursued the “wave” tower.

However Property Council state director Nathan Paine said it was unlikely the development would go ahead in the current economic environment.

“The issue is in the current market that finance is hard to obtain and to get finance the agencies or financiers are looking for (tenancy) pre-commitments of up to 70 per cent,” he said.

“That was quite a large building and so the pre-commitment requirements would be quite significant at a time when there really isn’t significant numbers of new tenants entering the market.

“I wouldn’t be expecting to see that building with that design coming out of the ground for the next year or two.”

The futuristic glass tower was touted as an instant landmark set to change the city’s skyline when it was announced in April 2007.

It received development approval from Adelaide City Council in February last year.

At 123m tall, it would be Adelaide’s second tallest building, behind Westpac House (135m).

However, with 46,000sq m of office space, it would be one-and-a-half times the size of Westpac House, with room for 3000 workers.

The development also includes parking, a gym, pool, creche and restaurant.

The site currently has six smaller buildings, including an Art Deco apartment block and a doctors’ surgery.

It is expected to fetch about $17 million.

[frank1]

That really sucks. I can't believe BHP didn't look into this one. It pisses me off that they talk about SA being the future centre of uranium mining blah blah and they still screw us over making perth there new headquarters, moving employees interstate. They really should give us at least one new tower with BHP on it.....so pissed off

[Ben]

From The Advertiser:

Crisis ends city's glass tower

RENATO CASTELLO
February 22, 2009 12:30am

PLANS to build a striking glass office tower in the heart of the city have been shattered.

Developer Lily Nominees Pty Ltd is selling the site of its planned 123m Currie St tower – dubbed the Heart of Glass – as it is unable to secure a major development partner and head tenant.

The $100 million, 31-level tower, which would have been Adelaide's second-tallest structure behind the Westpac building, received overwhelming public support when the Sunday Mail revealed its stunning design in April 2007.

Designed by South Australian architects Tectvs, it would have had up to 40,000 sq m of office space for more than 2000 employees, a 25m-lap swimming pool and a striking cantilevered facade.

Adelaide City Council approved the project, at 22 Currie St, in September 2007, but the development has stalled in the wake of the global financial crisis that has caused a major slowdown in the commercial property sector.

The downturn has seen banks drastically cut the amount of money they will lend for major commercial buildings. They also now require developers to secure 70 per cent occupancy before they will finance any construction, compared with 30 per cent a year ago.

Lily Nominees director Don Wake said he had been negotiating since last August with a major Australian development consortium to buy the site, but it had withdrawn.

"First they were going to buy the site but a few things changed in their company," he said.

"There's a lot of private buyers around and we might just get one. I've had a lot of people stuff me around so I thought I'd just put it on the market and see what the market says. We might get overseas buyers and the vacancy rates in Adelaide are still low."

The site is a 2958 sq m parcel of land facing Currie and Peel streets and Gilbert Place, opposite the Westpac building.

Mr Wake said he believed a development would happen on the site "one day" but might not be for another four or five years.

Selling agent Colliers International associate director Ian Thomas said the land was a rarity given its location.

Property Council of SA president Nathan Paine said the global credit crunch had lead to a slowdown in commercial property.

"With the tightening in the ability to get finance . . . developers need to put in more equity than they have in the past," he said.

"If you're looking to build a 30,000 sq m building you now need a pre-commitment from tenants to sell 70 per cent (of space) to start construction. But as we move out of the global crisis we will see that move back to 30 per cent."

He said Adelaide had Australia's second tightest office market with 3.3 per cent vacancy meaning there was demand for new buildings.

[Old Wharfie]

According to the Messenger article the land is expected to get $17 million at sale. For a prime, centrally located city location covering 3000sqm, this seems a tad on the cheap side. Perhaps another sign of GFC impact in the CBD?

[Shuz]

To be honest, I don't see this one going ahead at all.

[ricecrackers]

To be honest, I don't see this one going ahead at all.

i'd thought that for a while

wont be the last to be canceled due to the GFC either

this is like 1989-90 all over again

all of this has happened before and all of this will happen again

[karlp]

It is going to get worse, much worse. Don't believe the spin that Adelaide's immune from all this. We're not.

Rumours are swirling about several other proposed city developments on the brink of collapse.

This is just the start.