Rio signs Perth Airport property deal

Rio Tinto Iron Ore has given the green light to construct a Remote Operations Centre on a two-hectare site at Perth's Domestic Airport, as foreshadowed in WA Business News this month.

The complex will comprise a large purpose-built operational control room, an office block and supporting infrastructure.

Rio has signed a 10-year lease which will allow for potential expansion of the facility to cater for more than 320 staff.

When completed in 2009, ROC-based employees will work with Pilbara-based colleagues to operate and optimise key assets and processes, including all mines, processing plants, rail network, ports and power plants. In addition, operational planning and scheduling functions will be based in the ROC.

Rio said the ROC would facilitate more integrated planning and improved operational decision-making, as part of RTIO's drive to rapidly expand its Pilbara operations.

The buildings will be built to RTIO specification, including a 5-Star Green Building rating.

Perth Airport general manager of property Neil Kidd said the transaction represented a landmark in the development of commercial space at the airport's domestic precinct.

"Perth Airport is absolutely delighted to have a tenant of the calibre of Rio Tinto. The unique combination of a greenfields site, fantastic transport connectivity and room to grow in the future has made Perth Airport a perfect choice for Rio's ROC facility."

Mr Kidd said the development reflected a broader recognition in the market that Perth Airport was about to become Perth's next major growth hub for commercial real estate.

"Our light industrial precinct near the international terminal has already established itself as Perth's premier logistics hub, setting the highest standards in building design, estate management and connections to all major transport routes.

"The emergence of a new commercial estate near the domestic terminals will give Western Australian businesses a much needed quality alternative to the highly constrained property markets in the Perth CBD and West Perth."

The Perth offices of CB Richard Ellis Global Corporate Services and Jones Lang LaSalle assisted the parties in concluding the transaction.