After more than a year of intense leasing negotiations for its proposed office tower on the Westralia Square site, Multiplex Group has confirmed BHP Billiton is moving in.
After more than a year of intense leasing negotiations for its proposed office tower on the Westralia Square site, Multiplex Group has confirmed BHP Billiton is moving in.
In an announcement to the Australian Securities Exchange today, Multiplex said the mining giant intended to move its Petroleum, Iron Ore, Stainless Steel Materials, Nickel West, Exploration and other corporate divisions into some 40,000 square metres of office space within Multiplex's proposed 65,000sq m tower.
Multiplex said it had also agreed to terms with joint site owner, Griffin, to develop their respective portions of the prominent site at 125 St Georges Terrace and would submit a new development application to the City of Perth shortly.
The leasing deal comes almost ten months after Multiplex lost out on securing potential anchor tenant BankWest for the site; the bank choosing instead to move to Luke Saraceni and Hossean Pourzand's Raine Square office and retail project.
The Raine Square project is on a tight schedule, given BankWest is keen to occupy about 42,500sq m of office space there by November 2009.
BHP's choices for a new head office in Perth, meanwhile, were limited to either the Westralia Square site at 125 St Georges Terrace or the proposed stage two tower of Multiplex and Hawaiian's Bishops See project, comprising 46,000sq m of space.
Now that BHP has finally made its decision, Perth's biggest hole in the ground is likely to gain a new lease on life with a large public plaza, retail arcade, and the restoration of the historic buildings on its St Georges Terrace side.
Subject to gaining development approval, Multiplex is expected to commence construction of the office tower in early 2008 with BHP likely to move there before the end of 2011.
The full text of a Multiplex announcement is pasted below
Multiplex Group has been advised by BHP Billiton that it has selected 125 St Georges Terrace as the preferred site to locate all of its operating divisions in Western Australia. It is anticipated that, subject to documentation, this will lead to a commitment of some 40,000 square metres within the proposed development.
It is intended that Petroleum, Iron Ore, Stainless Steel Materials, Nickel West, Exploration and other corporate functions will co-locate in a single building to be developed and constructed by Multiplex at 125 St Georges Terrace.
Multiplex and Griffin, who jointly own the site, have agreed terms to develop their respective portions of the site.
Multiplex has proposed a tower of some 65,000 square metres which would be anchored by BHP Billiton's commitment and this will be submitted for Development Approval imminently.
Subject to Development Approval and documentation, it is expected that construction will commence in early 2008 with occupation expected before the end of 2011.
