Westpac, KPMG and Lend Lease sign biggest lease deal in Australian history

After 18 months of negotiation, developer

Lend Lease has announced that it has signed lease agreements with

Westpac and

KPMG for the first two buildings of the $6 billion

Barangaroo development in Sydney’s CBD.

Westpac has agreed to occupy 70 per cent of the first tower, equal to about 60,000 square metres, while still retaining its head office at the adjacent 275 Kent Street.

KPMG has entered into a conditional agreement for lease in the second tower, understood to be approximately 15,000 square metres.

Lend Lease is also committing to move its own offices to the second tower.

Together these leases represent over 75 per cent of the commercial floor space of the second tower.

It is understood that rents of between $900 and $1,300 per square metre have been negotiated with incentives of 20 per cent.

On completion, Barangaroo South will comprise three towers with speculation mounting that internet giant Google, accounting firm PWC and the Australian Stock Exchange all in contention.

Construction is currently underway with Westpac, KPMG and Lend Lease expected to begin occupation of the towers through 2015 and 2016.

NSW Premier Barry O’Farrell, who announced the deals with Lend Lease chief executive Steve McCann, marked the milestone by reinforcing Sydney’s status within Asia.

''This sends a powerful signal about Sydney's position as a financial and professional services hub in the Asia-Pacific region.''

"The Westpac, KPMG and Lend Lease tenancy commitments are a vote of confidence in Sydney and the Barangaroo project."

He would not be drawn on gaming billionaire James Packer’s plans for a high-roller casino on the site, stating that ‘discussions were in progress’.

It is understood that Lend Lease will now seek capital partners for the project in line with the company’s commitment to provide 25% of the equity.