This article is from the Australian Property Journal archive
AMP Capital’s decision to upgrade the A grade office tower at 140 St Georges Terrace in Perth has paid off with 17 new leases signed.
At the same time, Primewest has made a counter cyclical play.
AMP Capital managing director, office and industrial, Luke Briscoe said over the past 12 months, 17 commercial leases were signed at the 28-storey A grade office tower, after more than 70 groups inspected the building, signalling a significant increase in interest compared to the previous year.
“While the market overall is still showing signs of stress, there has been a real upturn in demand for the Perth CBD office market during 2017. Businesses currently located in the suburbs are a large proportion of potential tenants investigating properties in the CBD, together with new entrants to the Perth market. Both groups are taking advantage of the generous inducements from building owners,” Briscoe said.
Of the 17 new leases signed, 13 are new customers to the building including global IT companies Tieto and Hewlett Packard, as well as Environmental Resources Management and Cottee Parker Architects and investment management company Challenger. AMP Capital has also renewed four existing leases.
As part of its push to be more agile and to increase its ability to accommodate a variety of businesses, AMP Capital has also fit-out several upper floors suitable for medium-sized, time-poor businesses seeking a ready-to-go workspace. CBRE’s Andrew Denny partnered with AMP Capital and negotiated the leases.
In other Perth news, Primewest has settled on its $175 million acquisition the Quadrant building, on behalf of the Singapore’s GIC, in a counter cyclical play. The A-grade 21-level office tower at 1 William St is currently 38% vacant.
Australian Property Journal
