Bank of Communications contributes to a $880 million AUD syndicated loan for the Parramatta Square Project

Project narrative

In late November 2019, a syndicate of 32 lenders — including the Agricultural Bank of China (ABC), the Sydney, Macau, and Singapore Branches of the Bank of China (BOC), Bank of Communications (BoComm), China Construction Bank Corporation (CCB), and Industrial and Commercial Bank of China (ICBC) — entered into a $880 million AUD ($601.6 million USD) syndicated loan agreement with Walker Corporation — an Australian property development company — for the Parramatta Square Project. This loan carried a maturity period of seven years, an interest rate of BBSY plus an opening margin of 190 basis points (bps), and was divided into two tranches: a $531.25 million AUD Tranche A and a $348.75 million AUD Tranche B. The loan had a loan-to-value ratio of about 60%. Record ID #97095 captures ABC's contribution. Records ID #97096, #109964, and #109965 capture the Sydney, Macau, and Singapore Branches of BOC's contributions. Record ID #97097 captures BoComm's contribution. Record ID #97098 captures CCB's contribution. Record ID #97099 captures ICBC's contribution. In addition to the Chinese banks, the following lenders contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), Crédit Agricole, HSBC Bank Plc, AXA Investment Managers, ING Bank, Mega International Commercial Bank, Metlife Alico Life Insurance, Sumitomo Mitsui Banking Corporation (SMBC), Bank of East Asia Limited (BEA), Société Générale S.A. (SocGen), Crédit Industriel et Commercial (CIC), Hua Nan Commercial Bank (HNCB), KEB Hana Bank, Woori Bank, Bank SinoPac, E Sun Commercial Bank, IFM Investors, Shinhan Bank, Chang Hwa Commercial Bank, Eastspring Investments, KGI Bank, Shanghai Commercial & Saving Bank (SCSB), Taishin International Bank, and Taiwan Cooperative Bank. ANZ, CBA, Crédit Agricole, and HSBC served as mandated lead arranger and bookrunners. ABC, BOC Sydney, Macau, and Singapore, BoComm, CCB, ICBC, AXA Investment, ING, Mega International, Metlife Alico, SMBC, BEA, and SocGen served as mandated lead arrangers. CIC, HNCB, and KEB Hana Bank served as lead arrangers. Woori, Bank SinoPac, E.Sun, IFM Investors, Shinhan, Chang Hwa, Eastspring Investments, KGI Bank, SCSB, and Taiwan Cooperative Bank served as co-arrangers. The loan was oversubscribed in general syndication, with 26 lenders and commitments scaled back accordingly. The proceeds of this loan were to be used by the borrower for the $2.7 billion AUD Parramatta Square development. Located on a three hectare site in the Parramatta Central Business District (CBD) in the City of Parramatta 25-kilometers west of the Sydney CBD, in New South Wales, the $2.7 billion AUD Parramatta Square Development was an urban renewal project that sought to construct premium grade office space, a multi-level retail podium, and civic facilities to facilitate the evolution of the Parramatta CBD into a place for shopping, dining, work, and leisure, with 290,000 square meters of office and retail space and room for 23,500 occupants. Walker Corporation sought to construct four towers: 3 Parramatta Square (3PS), 4 Parramatta Square (4PS or 4PSQ), and 6 & 8 Parramatta Square. 6 & 8 Parramatta Square was a 154-meter tall 51-level office building on top of eight levels of parking and retail space.). It consisted of 120,000 square meters net lettable area (NLA) and spanned 55 levels. It had a combined 124,000 square meters of commercial floor space, and upon completion would become Australia's largest office hour. 3 Parramatta Square was a 16-story mixed-use commercial tower with three basement parking levels, a mezzanine level, a ground floor podium with 412 square meters of retail space, and 43,000 square meters of A-grade office space. 4 Parramatta Square was a 154-meter 43-level commercial office tower with four basements levels, 34 tower levels, and five podium levels for retail space. Additionally, the project included outdoor public space."). 4 Parramatta Square cost $400 million AUD. The broader Parramatta Square included campus housing for Western Sydney University students and the Parramatta City Council's civic building including a community center and library. Built Obayashi Pty Ltd (Built Obayashi JV) won a $680 million AUD contract for the construction of 6 & 8 Parramatta Square. Wire Industries Pty Ltd. assisted in the implementation of the towers. Johnson Pilton Walker Pty Ltd. was the architect. Walker contracted NDY to design the buildings 41 elevators and six escalators. McGregor Digital Construction served Built as the digital implementation manager, charged with overseeing model production, design coordination, and clash detection. Prism Facades provided the façade for 6 Parramatta Square. National Cable Installations won a contract under $750,000 AUD to install 58,000 LV cables in the buildings. Icon Metal was responsible for the installation of the six atrium stairs in the buildings. Webber Design was involved in implementation. Built Obayashi Pty Ltd was the head contractor for 4 Parramatta Square. It awarded a subcontract to Stantec for sustainability consultancy during the design and construction phase to ensure the building received at least a 5-star Green Star category. Woods Bagot was the designer of the building. AWM installed workstations, chairs, and monitor arms for the building. Heyday Group won a $20 million AUD contract for the design, supply and installation of the electrical, communications, DAS, security, diesel generator, EMI Shielding, fuel systems, and commissioning thereof for the building. Built Obayashi Pty Ltd was the head contractor for 3 Parramatta Square. LCI Consultants provided building services, including modelling, for the building. XD Profiles provided its Flat Freddie 14 lighting system for 3 Parramatta Square. Walker Corporation contracted WSP to provide structural, security, communications, acoustics, fire engineering, specialist lighting, sustinability, facade, traffic planning, and building services for the project. Artazan Property Group provided tenancy coordination services on the base building works of 3, 6, and 8 Parramatta Square. Walker contracted Carr to establish the foyers and third spaces with 4, 6, and 8 Parramatta Square. Sure Projects Australia provided waterproofing, line marking, and epoxy coating to the carpark for Parramatta Square. BG&E provided structural and civil engineering and flooding and drainage services for the entire Parramatta Square Project, including a flood assessment. It also developed the retention system for 6 & 8 Parramatta Square. Urbanite was responsible for the design of the signage. Walker contracted GML Heritage to design and interpret the communication of the tangible and intangible significance of the Parramatta Square to the public, leading to artwork and other designs commemorating the locations Aboriginal and non-Aboriginal history. Articolo Studios was contracted to design three custom pendants for the lobby of the towers. Construction on 4 Parramatta Square began in 2017. It was completed in 2019. Construction on 3 Parramatta Square began in 2018. It was completed in 2020. Construction on 6 & 8 began in 2019. 6 Parramatta Square was expected to be complete by August 2021 and 8 Parramatta Square was expected to be complete by April 2022. Construction was completed in 2022.