Australian news, and some related international items

King Uranium is losing not only its Big Mine, but also its Adelaide Castle!

BHP dumps Adelaide tower plans BY: SARAH DANCKERT  The Australian August 25, 2012 BHP Billiton has scrapped plans to take a long-term lease on a purpose-built $250 million office tower in central Adelaide following its decision to shelve the expansion of its Olympic Dam mine.

The miner is also understood to be considering reducing the amount of existing office space it leases, said to be about 10,000sqm, in what will be a blow for the Adelaide office market…. Adelaide property professionals are maintaining a stiff upper lip despite the miner’s devastating decision to put on ice the $US30 billion ($28.6bn) expansion of the uranium and copper mine, 560km north of the city.

Earlier this year the miner began sounding out developers for a purpose-built office tower in the city’s central business district to house the new employees. BHP Billiton established its uranium headquarters in Adelaide in 2009 when the company created the Uranium Customer Sector Group.

Up until recently BHP Billiton was seeking a long-term lease on a state-of-the-art office that would be built for the resources group in the heart of the city. The lease was to include naming rights over the building. Sources said the lease would have been structured in a
similar way to those of other large tenants in the city, such as
Santos, which are on 10-year leases and pay a significant premium for
naming rights.

A spokeswoman for the mining giant confirmed it would not be moving
into a specially built $250m office tower in the CBD.

“At this stage the Adelaide office is not planning to move to new
accommodation,” she said. The spokeswoman said it was “too soon to
tell” what affect the decision would have on the size of miner’s
office space requirement…..
Adelaide architect Paul Pruszinski, who is working on several
apartment projects in the CBD, said he expected all developers to
continue with their plans.

“None of these plans were linked to the expansion of Olympic Dam,” Mr
Pruszinski said. “There’s significant demand for property in the CBD,
particularly at more affordable prices.

“For many people houses in Adelaide, even in the outer suburbs, have
become too expensive.”…. “Demand for office space will continue
irrespective of BHP’s decision.”


August 25, 2012 - Posted by | business, South Australia, uranium

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