30/07/2020 - 14:44

Mineral Resources' move to Subiaco in doubt

30/07/2020 - 14:44

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Plans to relocate Mineral Resources' headquarters into the $110 million SubiXO development are in doubt over concerns about structural issues at the Hay St property.

Mineral Resources' move to Subiaco in doubt
The SubiXO development at 500 Hay St, Subiaco.

Plans to relocate Mineral Resources' headquarters into the $110 million SubiXO development are in doubt after the company is believed to have raised concerns about structural issues at the Hay St property.

The mining services company's move to Subiaco is expected to provide a boost to the City of Subiaco, which has struggled to attract new businesses to the area because of a perception it has been anti-development and anti-business.

But Business News understands Mineral Resources and development owner Dradgin Pte Ltd are now at loggerheads over the preliminary leasing agreement they signed in mid-2018.

A Mineral Resources spokesman would not confirm the nature of the dispute. 

"Mineral Resources is currently in discussions with the owner of 500 Hay Street in Subiaco regarding certain contractual and other aspects of its lease. These discussions are confidential and it would be inappropriate to comment further at this time," he said.

The building has had a troubled history, with a dispute between Singapore-based Dradgin and original builder Cooper & Oxley leading Dradgin to appoint Doric Group to complete the project midway through 2018. It was completed earlier this year.

But international hotel chain Park Regis pulled out of operating the hotel portion of the development prior to its opening. The Park Regis logo had been installed on the building midway through last year and features of the four-star, 168-room hotel included 14 suites, a function space, restaurant and bar overlooking a rooftop pool.

Mineral Resources entered into the preliminary agreement to lease the entire 10,500 sqm of office space at SubiXO after outgrowing its Applecross headquarters, owned by former Regis Resources chair Nick Giorgetta and his wife Kay.

The ambitious Subiaco development also includes cinemas and a food court.

Any move by Mineral Resources to back away from its relocation plans would add to the City of Subiaco's woes, with accountancy firm BDO reported to be considering a move out of Subiaco and into the Capital Square development in the CBD.

Comment has been sought from Dradgin.

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