AGL Energy has signed a 10-year tenancy agreement with Quintessential to take over 3,000 square meters of its iconic Adelaide tower at 100 King William Street.
Relocating from its Eastwood location to the heart of the CBD, AGL will occupy levels 2 and 3 of the towers, accounting for almost 18 per cent of the 17,000 square meters available across the building. AGL is the latest tenant to relocate to 100 King William Street, joining long-term occupiers DW Tucker Fox, which occupies two floors, and CBA, who has recently agreed on a new 10-year term on a prime retail space as part of the refurbished ground floor.
The agreement will also see AGL claim the exclusive signage for the building and naming rights, transforming what was previously the Commonwealth Bank Building and ushering in a new era and identity for the building.
AGL’s Chief Financial Officer, Gary Brown, said, “We are pleased to be able to enter an agreement to provide our people with new facilities that promote and enable innovation and team collaboration while also incorporating sustainable solutions to reduce our footprint. AGL has a long history in South Australia, including with the development of the recently launched 250 MW Torrens Island grid scale battery, and it’s great to be able to renew our commitment to the State.”
Noah Warren, Head of Quintessential Assets, said, “AGL’s decision to move their Adelaide office to 100 King William Street speaks to the continued flight to quality and location thematic, which we are seeing across the commercial office sector locally and across the country.”
He continued, “There is clear alignment with our ESG principles, and the refurbishment works we are undertaking will bring the building up to a minimum 4.5 Star NABERS Base Building Energy rating.””We understand the elements of a commercial office solution, within and around the building, are important for staff retention and ability to attract talent back to the office.”
“It is critical to consider how a building’s users interact with the space to create activation successfully. Quintessential demonstrates this understanding at 100 King William Street by adding new food and beverage offerings, amenities, third spaces and end-of-trip facilities to facilitate a thriving, social neighbourhood centre.”
James Young, State Chief Executive of Colliers and National Director of Occupier Services Tim Farley negotiated the deal.
Mr. Farley said, “This move will see AGL transition from their current location at 226 Greenhill Road in Eastwood to a centralised CBD location. 100 King William Street shall provide a more efficient premises design with fantastic initiatives within the base building to improve overall user experience and inclusiveness.
With flexible meeting spaces, business lounges, cafes and premium end of trip facilities, the building will provide significant benefits on a number of metrics to AGL’s team. Further, AGL has secured naming and signage rights to the building. The CBD location shall take advantage of superior public transport accessibility, together with fantastic end of trip facilities that shall promote a healthy alternative commute opportunity for the team.
Quintessential’s 100 King William Street beat strong competition from alternative opportunities that were presented for consideration. The commitment to sustainability and overall user experience were instrumental in the attraction of AGL to this location.”
Quintessential, which has a growing presence in South Australia with several buildings in the Adelaide CBD and industrial sites, announced the AGL agreement and confirmed its $30 million commitment to the major regeneration of 100 King William Street.
The regenerative works, which are already underway and expected to reach practical completion in July 2024, will include an upgrade of the ground floor foyer with the creation of a distinctive and unique avenue running from King William Street to Exchange Place, bookable third spaces, renewed food and beverage offerings, ground floor end of trip facilities, a significant façade refurbishment and the addition of a business lounge.
Regeneration works like this supports the growing trend of major occupiers moving into the city from suburban locations seeking CBD amenity to attract workers back to the office and retain the best talent.
Creating A-grade commercial space with significant regenerative works speaks to the market’s demand and competitiveness, with major occupiers looking for enhanced offerings that will complement their recruitment and talent retention strategies.
Quintessential is committed to improving the energy efficiency of its properties, leveraging the environmental impact and carbon-saving outcomes of regenerating buildings rather than rebuilding.
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