Lendlease has lodged plans for its first commercial tower at the $1.3 billion Waterbank urban regeneration project on the edge of the Perth CBD, next to the Swan River.
The plans are outlined in two separate development proposals submitted to the Metropolitan Redevelopment Authority for either a five-level, 10,570-square-metre tower or a six-level 13,600 sq m building.
The proposed building will front the extension of Hay Street to the Swan River as part of the mixed-use project where the towers will overlook the WACA sports ground and across the river, the Burswood casino and the new Perth stadium.
Lendlease already has two residential towers approved at Waterbank. Proposals for the new office tower – a six-level building could be worth $85 million – come amid stirrings of optimism for Perth’s improving office market.
“We are starting to see some green shoots in the Perth market,” Kylie Rampa, who heads Lendlease’s property arm in Australia, told analysts in June.
“We don’t think it will recover to the heady height that that market was at through the resources boom, but it definitely … is starting to come out of that trough position.”
A key feature of the new office building, to be called The Campus, will be its generous 3000 sq m floor plates.
“The design for Waterbank’ s first commercial building reflects our commitment to create a new kind of office environment in Perth,” development director David Ockenden said.
“Waterbank’ s future commercial tenants will also have direct access to the CBD via free public transport, plentiful onsite public parking and ease of access to major city arterial road routes.”
The entire Waterbank development will ultimately be home to about 1300 residential units, about 150 affordable housing units, as well as the office space and 2500 sq m of retail and community uses.
As many as four hectares of the site will become public realm along the riverside.
Tapping into that riparian connection, future users of The Campus will be able to kayak to work, with wash-down bays and kayak storage included in the end-of-trip facilities proposed for the building.
Expectations for Perth’s office market are rising in line with the revival of Western Australia’s resource-dependent economy.
Transactions in Perth office towers could top $1 billion this calendar year, with much of the $350 million potential sale of the premium-grade Exchange Plaza office tower being offered to the market by joint owners AMP Capital and Primewest.
Commercial development is picking up steam in the Elizabeth Quay precinct as well, where resources giant Chevron Australia has appointed Brookfield to develop its new corporate headquarters