Construction loan for the Kewit building in Melbourne’s CBD will be $300 million, with a first-time buyer to be announced in January 2018.
The builder, Kiewite Construction, said the loan would allow it to fund the purchase of the Kiwit building, which is located in the city’s west end.
The property has been used as a warehouse since its construction in 2002.
It was purchased by a Sydney-based company in 2015 for $1.3 billion.
Kiewite said it was pleased to have secured the first-of-its-kind construction loan, and hoped it would help it build the building on a much-needed scale.
The company said the $300-million loan would be a significant boost to the building’s value, and would allow Kiewites development team to “immediately and fully deliver a new and improved, more modern and sustainable urban building”.
“This is a major milestone for Kiewiex as we enter the next phase of the company’s development,” Kiewiks chief executive and CEO, Peter Kiewiewit, said.
“With this new construction loan we are confident that the building can be completed and become the ideal new home for our new employees, and our existing tenants.”
Kiewit Construction’s website lists a range of options for the building, including an office building, residential, office, and a supermarket.
“We’re excited about the opportunity to build a modern, highly functional, and highly functional residential building in the City of Melbourne,” Mr Kiewitz said.
“This will be a great addition to the city centre and will create many new jobs.”
Kiwit Construction has previously purchased property in Melbourne from other builders, including a $1 billion loan from the State Government, which helped fund the renovation of a shopping mall in the northern suburb of Cairns in 2016.
Construction loan for Kewits Kiewiti building is $300M (via @michaelc_lubin) Topics:housing-industry,community-and-society,housing,housing-facilities,community,communityed-societies,melbourne-3000,vic,australiaMore stories from Australia