This was published 8 years ago
Walker Corp to cash in Collins Square for $2.5 billion
By Simon Johanson
Billionaire Sydney property developer Lang Walker has put his vast Collins Square project in Melbourne's Docklands on the market with price expectations believed to be around $2.5 billion.
Walker Corporation's Collins Square project is midway through development with two large towers completed and leased, another two expected to be finished next year, with the final tower due for completion in 2017.
Walker Corporation's Collins Square project is midway through development, with the final tower due for completion in 2017.
Once complete the cluster of towers at the bottom end of Batman's Hill will have more than 250,000 square metres of lettable space with about 45,000 people visiting and working every day.
Current tenants in the buildings include Marsh Mercer, Transurban, KPMG, CBA, Penguin Random House and Pearson, Maddocks, Link Group, Mott McDonald and AECOM.
An artist's rendering of Collins Square. Once complete the mixed-use commercial and retail CBD precincts will have more than 250,000 square metres of lettable space.
Mr Walker said he had decided to sell after being approached by a number of potential buyers.
Walker Corporation has appointed UBS AG to conduct the formal sale process targeting domestic and international investors.
The assets also include the low-lying refurbished historic Goods Shed which sits alongside Wurundjeri Way.
"In a sustained low interest rate environment, assets like Collins Square, Melbourne, which enjoy a long dated lease expiry profile and attractive fixed annual rent increases from blue-chip tenants, will be highly sought after," UBS' head of real estate Tim Church said.
Mr Walker has a knack for picking his exit from projects during the peak of property cycles.
In 1994 he floated his business on the ASX before selling out and striking out again on his own with McRoss Developments. He sold again in 2006 before the global financial crisis but retained and added to some key assets.
Walker Corporation has a $23 billion pipeline of projects. In August it fought off interest from Leighton Properties, Charter Hall and Dexus Property Group to snare the $2 billion commercial development rights in Stages 5 and 6 of Parramatta Square in Sydney.
The group also has Adelaide Festival Centre development, as well as other projects in Canberra.