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Deutsche Office Trust has paid $112 million for 30-38 Hickson Road,
Millers Point, which will be the new headquarters of Lend Lease.
Lend Lease, which has spent 30 years at the icon Australia Square in George
Street, will move by the end of 2003.
Australia Square is jointly owned by Deutsche Office Trust and General
Property Trust.
In a well-anticipated deal, Deutsche Office Trust will be the sole owner of
the new office building. The trust bought the land from Delmo No 2 Pty Ltd, a
company owned by Jose de la Vega, for development of a low-rise office complex.
The complex will comprise about 18,700 square metres of office space, a
600sqm communal atrium and basement parking for 113 cars.
Lend Lease will also jointly manage the development of the remainder of the
7093sqm site for Delmo. This incorporates heritage buildings that are to be
refurbished, a new residential apartment building and a public plaza.
Construction will start immediately with completion scheduled for late 2003.
Lend Lease has pre-committed to a 10-year lease for 15,300sqm of office
space, with rent to start at $420 per square metre net of expenses.
The property developer and manager has two five-year options on the property.
In addition, Lend Lease will have naming and signage rights and a licence for
74 car spaces.
Deutsche Office Trust general manager Michael Brown said the development gave
the trust a new-generation showcase office development in the emerging
northwest waterfront precinct of Sydney's CBD.
``Lend Lease is a major client of Deutsche Office Trust and this transaction
enables us to continue that association by participating in the development and
ownership of their new corporate headquarters," he said.
Lend Lease Development will be the development manager for the project and
Bovis Lend Lease is responsible for design and construction. Deutsche Office
Trust will fund the project costs progressively through its bank and corporate
debt facilities.
The chief executive of Lend Lease's Real Estate Solutions business in the
Asia-Pacific region, Des Marks, said the investment take-out agreement with
Deutsche was in line with Lend Lease's third party capital development model.
``We are creating a high quality investment asset for the trust which we are
confident will break new ground in work environments," Mr Marks said.
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