07/08/2007 - 22:00

Miners take major stake in office space

07/08/2007 - 22:00

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Western Australia’s resources boom continues to put pressure on Perth’s commercial office space market, according to the Property Council of Australia WA.

Miners take major stake in office space

Western Australia’s resources boom continues to put pressure on Perth’s commercial office space market, according to the Property Council of Australia WA.

PCA WA executive director Joe Lenzo said recent research had shown 71 per cent of leases in Perth in the past year were mining related.

The situation is unlikely to ease, with the mining industry having already claimed a major stake in the 245,500 square metres of commercial office space to be created in five major projects that are either planned or under construction.

City Square, Bishops See, and Century City have all signed mining companies, while Raine Square and 140 William Street have also secured major tenants.

BHP Billiton has pre-committed to 40,000 sq m of Multiplex Group’s proposed City Square office tower on the Westralia Square site and is likely to move in by the end of 2011.

The mining giant plans to move its petroleum, iron ore, stainless steel materials, Nickel West, exploration and other corporate divisions into the proposed 65,000 sq m tower.

Bishops See – the joint venture between Multiplex and Hawaiian – is tipped to be the future home of Worley Parsons, with the engineering company rumoured to take space in the stage one tower shortly.

Meanwhile, Japanese oil and gas company INPEX, which has offshore interests in WA, has signed on to take 7,000 sq m, or 25 per cent, of the Century City project at 100 St Georges Terrace.

In other projects, the BankWest-anchored $450 million Raine Square project is yet to confirm other tenants.

Similarly, Cbus Property’s 140 William Street project has 13,000 sq m yet to be signed, with the state government having committed to 22,000 sq m. 

Cbus Property chief executive officer Adrian Pozzo told WA Business News the company was still in negotiations with other tenants but was in no rush to finalise agreements.

Other mining companies that are still searching for office space include Rio Tinto, which requires about 7,000 sq m of space, both in the city and for an operations centre on the fringe.

Oil and gas giant Chevron is also yet to commit to a tenancy.

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