22/10/2008 - 22:00

Albion rethink on CBD home

22/10/2008 - 22:00

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CENTRAL Perth's high rents are forcing long-term tenants to rethink their accommodation needs.

Albion rethink on CBD home

CENTRAL Perth's high rents are forcing long-term tenants to rethink their accommodation needs.

Investment group Albion Capital Partners is one group that is assessing its plans after facing a nearly three-fold increase in rent at its CBD premises, the BGC Centre, where its lease expires next month.

The group, which is known among other things for its recapitalisation work, is weighing up its options but is very likely to physically split up for the short-term, putting its small administration staff in with a 'friendly' company in the CBD while it seeks a way to house the whole partnership under one roof.

Albion partner Gavin Rezos said the group operated a collective of specialists with varied interests, allowing them to split up temporarily while they sought a new home.

Mr Rezos said the partnership owned buildings in suburban business districts such as Subiaco and Nedlands, which may have space available in mid-2009, depending on whether or not they decided to accommodate themselves in what was an investment property.

However, with many of them on the road and doing business in the US, Europe and the east coast, there was not a problem with downsizing for the short-term and little issue if the group's CBD presence was lost, especially as it currently had too much space - a luxury new rental rates made more difficult to maintain.

"We would stick there if we had half the space we have got," Mr Rezos said.

He added that the renewal offered was very long-term, which would lock Albion in during a phase when it reckons the property market will soften.

"We know the market may dip in three years and everyone wants five-year deals," Mr Rezos said.

Another senior partner, Tony Grist, said the city location was convenient to him as a director of both Amcom Ltd and iiNet Ltd but he was not concerned about events triggered by a jump in rent from $290 per square metre to $825/sqm.

Mr Grist said he had often wondered about the concept of having a more relaxed approach than being in the city.

"It is nice to sit back and contemplate," he said.

"I think there will be better opportunities emerging in the city and surrounds, if not to buy then to rent at more realistic rates."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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