NATIONAL engineering and mining contractor Henry Walker Eltin’s search for 3,000 square metres of office accomodation could spark a new office building in a fringe Perth CBD suburb.
Henry Walker Eltin, which is located in a University of WA building in Nedlands – where its lease expires in 18 months – has short-listed a range of potential office developments and existing building tenancies from its call for expressions of interest that closed last week.
The company is considering two options, either a design and construct office accomodation or a tenancy in an existing building.
The Realcom Group principal Reg Bateman said fringe CBD areas were being considered and included Subiaco, West Perth, East Perth and Belmont.
Mr Bateman said a number of Perth developers had submitted proposals for a new office development, many of which used the Henry Walker Eltin 3,000sqm requirement as a precommitment to anchor a much larger office building.
He said Henry Walker Eltin had been able to quadruple the number of options available to it by going public rather than just dealing with a couple of leasing agents.
“It has given a great deal of market information, what people are asking for rents and what tenant incentives there are,” Mr Bateman said.
Subiaco and Belmont are the two main areas submissions for office developments are coming from.
Mr Bateman said property developers were keen to establish a business park in Belmont and that around five submissions had proposed office developments in Belmont.
Henry Walker Eltin expects to announce a decision on its new location next year.
While a potential new office building is good news for the property development market, Henry Walker Eltin has failed to impress investors.
Earlier this week the company posted a lower than expected earnings guidance, shedding almost one-quarter of its share value.
Despite the infrastructure and mining boom, the company recorded a net loss of $26.3 million in 2002-03 and will pay no dividend.
