17th May 2018
First State Super, Altis Property Partners and Sirona Capital announced they have signed a $190m funding package agreement for the Kings Square Fremantle redevelopment, comprising construction and term debt.
First State Super is one of Australia’s largest superannuation funds, managing approximately $89 billion on behalf of 800,000 public sector employees and other contributing members.
First State Super chief investment officer, Damian Graham, said the fund was pleased to be working with Altis and Sirona to secure its investment in the Kings Square Fremantle redevelopment on behalf of its members,” Mr Graham said.
“This is our first major investment in Western Australia and will form a valuable part of our property investment portfolio.
“We look to invest in ways that will provide long-term sustainable returns to our members and at the same time contribute to the growth of the wider community. We believe this investment will do this.”
Sirona Capital managing director Matthew McNeilly said he was excited to have First State Super on board as a funding partner.
“What sets this project apart from others – and what First State Super and Altis has clearly seen – is that we have actively sought to conceptualise, plan and deliver it in ways that reset traditional thinking for projects of this type, size and scale,” Mr McNeilly said.
Kings Square Fremantle is a transformational renewal project in the heart of Western Australia’s historic port city. It will become a major employment, retail and entertainment precinct.
The project is underwritten by a 15-year lease to the WA State Government for 20,000sqm over five levels and across two buildings to accommodate some functions of the Department of Communities, mainly Housing. The project also includes the introduction of FOMO (Fremantle On My Own), a new urban retail, food and dining destination, the 830 bay multi-deck Queensgate car park.
Paul Notaras, Partner at Altis Property Partners said it was the first structured funding transaction under their mandate with First State Super
“The development and term funding package will provide First State Super with an attractive risk/return profile.”
Demolition work at the project site, overseen by Probuild, started in early January and is on schedule.
The project forms part of a larger $270 million Kings Square revitalisation, a joint venture between Sirona Capital and the City of Fremantle, with the city contributing $50 million to a new civic centre.