TWP signs in West Perth

WEST Perth's office building spree has secured another major tenant, with engineering company TWP Australia Pty Ltd signing on to lease the entire A-grade building being constructed at 100 Havelock Street.

TWP, which currently leases offices at two separate buildings on Ord Street, will consolidate its operations over 4,500 square metres in the six-level building.

The South African-based company established its Australian subsidiary last year to service WA's mining industry, and is undergoing a rapid growth phase.

TWP managing director Bryan Bailie said the decision to remain in West Perth was motivated by a need to build corporate identity.

"The major driver is that there is an intention to list the holding company on the ASX next year, and we need corporate representation when we do that," Mr Bailie told WA Business News.

"Because the business is new in Australia, we felt we needed to be that much closer to the city, albeit in a more expensive location."

The deal, brokered by Burgess Rawson associate director of office leasing, Clive Norman, comprises a long-term lease in excess of five years, at a rent of over $550/sqm, including parking.

It is the first commercial development undertaken by local developer, Ian Jackson, who has built a number of apartment projects in West Perth.

TWP joins oil and gas giant Chevron, and the Department of Immigration and Citizenship, in signing on to new projects in the West Perth area.

Other recently announced office developments include a 5,500sqm building at 789 Wellington Street, owned by Westmain Corporation Pty Ltd, which has received approval from the City of Perth, and a proposed eight-storey building across two sites on George Street.

West Perth has an official vacancy rate of zero, according to the Property Council of Australia's mid-year office market report, with just 6,500sqm of space forecast to be built in the current financial year.

This figure is expected to increase significantly in 2009-10, to 16,300sqm, adding to a total of 371,000sqm at present.

The 100 Havelock Street building, which is targeting a minimum 4.5-star Australian Building Greenhouse Rating, is due for completion in April next year.