Federal government signs landmark Adelaide office pre-commitment
Services Australia – known until 2019 as the Department of Human Services – has signed one of Adelaide’s biggest office pre-commitments.
The 28,500 square metre deal fills 71 per cent of a 14-level tower Charter Hall has proposed at 52-66 King William Street, incorporating the art deco and heritage protected Sands and McDougall building.
With the rental agreement, the landlord has kicked off construction.
The $450 million Cox Architecture development, Adelaide’s biggest commercial real estate project, is due to open in 2023.
Also known as 60KW or 60 King William St, Built will construct it.
The investment will be held by a Charter Hall partnership comprising Charter Hall Prime Office Fund, Direct PFA Fund and an institutional mandate with Victorian Funds Management Corporation, with which it also co-controls Bunnings stores.
Services Australia and 60 King William Street
The federal government agency has committed to 60 King William St for an initial 10 years; more than 2200 staff will be based there.
The office will be flanked by 3600 sqm of retail including a food and lifestyle precinct with a supermarket (story continues below).
It also contains a rooftop terrace, hygiene focused technologies like touchless bathroom amenities and bacterial elimination systems – and Adelaide’s first sky lobby.
The floorplates are a large 3000 sqm.
Charter Hall said the project will contain the city’s largest end-of-trip facilities with private showers and grooming stations, and that it will be hotel-grade quality.
Following the Services Australia pre-commitment it has the top three storeys of the 40,000 sqm office component to fill.
South Australian premier Steven Marshall said the 60 King William St development “makes a clear statement that Adelaide and South Australia is open for business” and “will leave a lasting legacy on our CBD footprint and create a huge number of jobs at a time when employment and private investment is greatly needed”.
Charter Hall managing director and chief executive officer, David Harrison, said the commonwealth government is one of its biggest tenant customers.
Its Adelaide property portfolio includes offices, retail and industrial stock.
