The race to secure tenants for Perth’s next office tower is being led by Multiplex and Monaco-based recluse Ric Stowe, with a development application expected to be lodged next month for the long derelict Westralia Square site.
The race to secure tenants for Perth’s next office tower is being led by Multiplex and Monaco-based recluse Ric Stowe, with a development application expected to be lodged next month for the long derelict Westralia Square site.
Multiplex director Jeff Holloway told WA Business News that the project design for the joint venture was almost complete and that Multiplex intended to file a development application in March.
“We are within weeks of finalising the design, and are very confident that we will start the project in August of this year,” he said.
“We have been targeting both commercial office and retail tenants and intend to develop the site in a number of stages.
“We are planning on approximately 990 car bays, 17,000 square metres of retail and 50,000 square metres of office space.
“The car park, retail and some office space should be available in 2007,” he said.
Multiplex and Ric Stowe’s Griffin Group bought the site for $19 million from Kerry Packer in 2003.
Mr Holloway confirmed Multiplex was in final negotiations with an anchor tenant but would not comment on who the tenant was.
It is well known in the property industry that several office tenants will be looking to anchor new buildings when their leases expire in 2007, including the Department of Premier and Cabinet (24,000 square metres), The Department of Justice (16,000 square metres), the National Australia Bank (8,000 square metres) and Alinta (4,000 to 5,000 square metres.
Market analysts speculate that the NAB is the anchor tenant for the Westralia development, but NAB general manager Geoff Greer said the bank was still looking at its options.
“There is no secret that we want to go to a new building. We expect to make an announcement in the next couple of months,” he said.
Other development sites suitable for office towers currently vying for tenants include Bishops See (Hawaiian Management), 100 St Georges Terrace (Pivot), and Raine Square (Luke Saraceni).
It was reported late last year that the Pivot group would be building a new $140 million retail centre on the 100 St Georges Terrace site, and that foundations would be laid for a proposed office tower on the site.
Property industry analysts say government tenants prefer large floor plates and that Raine Square’s proposed 5,000 square metre floor plates would be perfectly suited.
Jones Lang LaSalle director of office leasing Nick Van Helden said there was currently very little consecutive floor space available in the CBD due to net take up and that the market needed to create new space.
“It is time to get a new building out of the ground to cater for demand that will increase over the next few years. Construction needs to begin now to be complete for 2007,” he said.
“Most people a year ago would not say a new building was a good idea, but the state of the market has really turned around in that time.”
