Signing the largest leasing deal in the history of the Ipswich CBD, the Queensland Government has secured the entire commercial component of the new nine-story office tower being developed as part of the $1 billon Ipswich City Heart development.

Located on the corner of Brisbane and Bell Streets in the Ipswich CBD, the A-Grade office tower will become the largest commercial building in the city, comprising a net lettable area of 18,000sqm.

Under the agreement, the Department of Public Works has secured the entire commercial component of the building, totalling 16,120sqm. This includes nine levels of commercial space and a 520sqm Customer Service Centre on the upper ground floor.

Ipswich Mayor Paul Pisasale said the lease agreement was a strong endorsement of the multi-million dollar revitalisation project led by Joint Venture partners Ipswich City Properties and Leighton Properties.

“It is also a vote of confidence in Ipswich,” Mr Pisasale said.

Upon completion, the landmark Ipswich City Heart urban renewal project will create a vibrant mixed-use precinct comprising a 60,000 square metre shopping centre, speciality retail, restaurants, commercial office space and residential apartment living.

Chairman of Ipswich City Properties, Paul Tully, said the first stage of the landmark renewal project comprised the delivery of the largest of the three commercial towers planned for the precinct.

“The office tower will have the capacity to accommodate up to 1,200 staff and include eight retail tenancies across the mezzanine, upper ground and lower ground floor levels,” Paul Tully said.

National Head of Commercial at Leighton Properties, Andrew Borger, said the State Government has secured the space for an initial term of 15 years, with two five-year options.

“The State Government’s long-term lease of the new commercial tower will make it the key commercial activity centre of the CBD, close to public transport links and the proposed new retail offer,” Mr Borger said.

“The building has been designed to the highest standards and will be the first prime space building in Ipswich to incorporate innovative sustainability initiatives, targeting a 4.5 Star NABERS Energy rating and a 5 Star Green Star - Office Design v3 rating.”

Mr Borger said Leighton Properties and Ipswich City Properties intend to commence early works on the commercial tower at the end of 2011, with completion scheduled in late 2013.