Rio, Lavan eye Elizabeth Quay

Mining giant Rio Tinto is in the market to relocate from Central Park, with Victor Goh’s 53-storey tower in Elizabeth Quay in its sights.

Additionally, law firm Lavan has inked a deal to potentially move into the building, which is due for completion in 2027.

Business News understands Lavan has signed a non-binding heads of agreement to occupy 4,000 square metres at the $400 million development on Lot 4 in Elizabeth Quay when its lease at 1 William Street expires in 2027.

Lavan would not comment on the move, but multiple industry sources have confirmed the negotiations.

Rio Tinto, which has anchored 51-storey St Georges Terrace building Central Park since 2006, is considering a move to the Elizabeth Quay tower when its lease expires in 2030.

The mining giant is said to be the target tenant for the Lot 4 development, which is set to contain about 60,000sqm of office space.

Rio Tinto currently occupies about 30,000sqm at Central Park, across 17 floors.

The miner also recently leased about 8,000sqm at Raine Square (with a 2030 lease expiry).

If Rio Tinto did move into the Lot 4 development, it would add to several moves from St Georges Terrace to Elizabeth Quay in recent months.

Lot 4 in Elizabeth Quay is under construction. Photo: Claire Tyrrell

Director of independent tenant advisory firm Propertysolve David Barnes, who has acted on behalf of clients looking at buildings in Elizabeth Quay, said developments in the precinct were changing the heart of the CBD.

“It’s definitely pulling the centre of gravity of the CBD back towards William Street where it always used to be,” he said.

“There’s an attraction being closer to that heart.”

Mr Barnes said Mr Goh, who is building Lot 4 via CA Corporation, had challenged the notion that high levels of pre-commitment were required to get an office tower out of the ground.

When Mr Goh started on Lot 4 last year, he had no tenants locked in for the tower.

“Generally, developers would need pre-commitments but Victor Goh has changed that, he has a 'build-it-and-they-will-come' mentality,” Mr Barnes said.

Mr Goh is also part way through constructing a 35-storey cylindrical building, Capital Square tower 3, due for completion in the first half of this year, which is being built on spec (i.e. with no tenant precommitment).

He is also building apartment and hotel buildings at Lots 2 and 3 in Elizabeth Quay, due for completion later this year. 

Rio Tinto would not comment on the move. 

See the next print edition of Business News for more on Perth's office market.