At its formal groundbreaking ceremony today, Leighton Properties announced that it had formally signed Leighton Contractors to almost 13,000 sqm of its 567 Collins St building in Melbourne.
The event was marked by the Lord Mayor of Melbourne, Robert Doyle, turning the first sod on the development in the prime CBD location in the Western end of the CBD on the edge of Docklands.
The Lord Mayor was flanked by Mr Hamish Tyrwhitt – CEO Leighton Holdings, Mr Mark Gray – MD Leighton Properties and Mr Peter Hicks – CFO Leighton Contractors.
567 Collins Street will be the largest PCA Premium Grade tower constructed in Melbourne in the last 25 years and will occupy a site of 3,942 sqm with a 74m frontage to Collins Street.
Located between Spencer and King Streets the 26 level tower is almost 50% leased following the announcement of a major new lease to Leighton Contractors. Leighton Contractors will establish its Victorian head office across 12,700 sqm of the campus component of the building.
They will join leading law firm Corrs Chambers Westgarth who signed a lease in late 2012 for 8,800 sqm of the building’s skyrise.
Leighton Contractors commenced construction of the 55,000 sqm Premium Grade tower in January this year with completion expected in mid 2015.
Leighton Properties are currently in negotiations to sell the building to a potential consortium of investors.
Leighton Properties Managing Director Mr Mark Gray said, “567 Collins Street is creating overall shareholder value by leveraging the Leighton Group’s core competencies in development and construction to create a five star premium building for Melbourne.
“We moved quickly late last year to unlock the site’s potential by redesigning the project to meet market occupancy requirements as well as to accommodate the Leighton tenancy.”
Leighton Contractors Managing Director Craig Laslett said, “The development will provide Leighton Contractors the opportunity to consolidate 600 employees from five separate locations into a single well-positioned Victorian headquarters. It’s also very pleasing to be constructing another iconic office complex for the Melbourne CBD.”
The prime site is located in the heart of Melbourne’s legal, commercial, insurance, banking and finance precincts within 100 metres of Southern Cross Station and is central to the city's three main activities districts - the CBD, Docklands and Southbank.
The 26 level development also provides excellent access to all forms of public transport, freeways, major road networks, childcare and retail amenity at the heart of the City’s burgeoning west end business.
The building includes a 2-3 level high foyer comprising a lobby, cafe and retail component, 7 levels of podium campus office and 16 levels of upper tower office with a Net Lettable Area (“NLA”) of approximately 55,000 sqm.