This article is from the Australian Property Journal archive
GLOBAL engineering firm KBR has committed to 2,000 sqm at Quintessential’s 30 Pirie Street office tower – currently undergoing a major regeneration in the wake of anchor Telstra’s exit – as the Adelaide CBD continues a strong run of leasing form.
Quintessential’s 26-storey tower will also be refurbished, following MaxCap’s $35 million backing after being awarded a mandate by the Clean Energy Finance Corporation to finance sustainable building upgrades.
KBR will move from its Parkside location to the heart of the Adelaide CBD and is the latest major tenant to relocate to 30 Pirie Street this year, with Boeing and TSA accounting for almost 5,000 sqm of space.
The Adelaide CBD recorded the strongest net absorption result of any CBD office market over the September quarter, according to JLL, with 37,500 sqm of net absorption. That drove an annual tally of 45,300 sqm, 3.5 times higher than the 25-year average of 12,800 sqm.
Quintessential acquired the 1987-built 30 Pirie Street last summer for $73 million, ahead of long-term anchor Telstra’s leaving this year for Charter Hall’s new 60 King William Street tower.
KBR’s new digs at 30 Pirie Street will cover floors 20 and 21.
“Everything we do at KBR is centred around supporting the country’s continued economic growth, national security and energy transition,” said Natalie Papaioannou, operations manager South Australia for KBR.
“Engaged by governments and businesses in our primary markets of defence and infrastructure, we need a central location and a building design that enables us to work together to address our customers’ growing needs to continue delivering innovative, sustainable solutions.”
Noah Warren, head of Quintessential Assets team, said, “The Quintessential Assets team is thrilled to deliver a full turn-key fit-out solution for KBR, providing an exceptional workspace they can be proud of whilst supporting the community and businesses by appointing local consultants and contractors.”
A $30 million major regeneration has been underway for the past six months with the existing fit-out already stripped out. Practical completion is expected in July of 2024. The regenerative works include an overhaul of the ground floor foyer, adding end-of-trip facilities, bookable third spaces, a coffee bar with seating, an open workspace, refurbished façade and lifts throughout.
Melbourne-based Quintessential recently settled on its $293.1 million acquisition of the One Margaret Street in the Sydney CBD from Dexus, at a 21% discount to the asset’s June 2022 book value, and where it has pledged a further $90 million to refurbish and reposition.
Works will commence next year on the A-grade 18-storey tower, located between the redeveloped Wynyard Station and the Barangaroo precinct. The redevelopment plans include a 10,000 sqm podium with floor areas of around 1,850 sqm.
