Leighton sells three towers within Kings Square Perth development to Dexus for $434.8 million

Leighton Properties has agreed to sell three office towers planned within the Kings Square mixed-use development in Perth to Dexus for $434.8 million.

This is the largest commercial property development sale in Western Australia.

It comes as Leighton Group reported first quarter 2013 net profit of $123 million and reaffirmed its guidance for full-year profit of $600 million.

The three buildings, KS1, KS2 and KS3, will be purchased by Dexus and its Wholesale Property Fund, subject to a number of approvals.

The towers will offer a total of 52,781 square metres of office and retail space.

KS1, on the corner of King and Wellington Streets, will have 23,156 square metres of tenancy space across 19 levels.

The 11-level KS2 tower has a further 20,440 square metres of space; and KS3 will have 9,185 square metres of commercial and retail space over nine levels and includes childcare facilities, shops, bicycle amenities and a gym. 

Construction will commence in mid-2013 with completion of all three buildings expected in mid 2015.

Kings Square forms part of the $4 billion Perth City Link project initiated by the State Government, the City of Perth and the Federal Government

Leighton Properties also announced that Shell Australia has signed on as anchor tenant at KS2 while Leighton Group subsidiary John Holland will relocate its Western Australian headquarters to Kings Square with a 5,360 square metre tenancy.

“Shell is investing more than $30 billion in Australia over the next five years, which includes our first Floating LNG project, Prelude,” says Shell Australia country chair Ann Pickard.

In addition to the three commercial and retail towers, the Kings Square precinct will include a further two commercial towers and two residential blocks.

Construction will be undertaken by Leighton Group contractors - John Holland and Leighton Contractors’ subsidiary Broad.

These transactions were facilitated by Simon Storry and Paul Noonan from Jones Lang LaSalle and Richard Butler from CBRE.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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