This article is from the Australian Property Journal archive
INDUSTRY super fund-backed Cbus Property has partnered with Brookfield to develop a 19-level premium-grade office tower at Perth’s Elizabeth Quay, in one of the first major deals in the slow 2023 market.
The development site at Lot 6, Elizabeth Quay, is in an active part of the Perth CBD. It’s next to the Brookfield-developed Chevron headquarters at One The Esplanade, and amongst CA Corporation’s $400 million, 54-storey office tower at Lot 4, Far East Consortium’s Ritz-Carlton, and EQ West development on Lots 2 and 3 by CA & Associates.
Cbus Property and Brookfield’s tower will feature large floorplates averaging 1,870 sqm, uninterrupted river views and end-of-trip facilities. It will also offer a cafe, business lounge, conferencing facilities and waterfront dining, and boast good transport links.
Transactions have dried up in a period of price rediscovery and softening yields – values are expected to continue coming down over the 12 months, Moody’s Investor Service said last week – and as the white-collar populace takes on hybrid working and real estate requirements continue to change, both in quality and quantity.
Perth’s office market is faring well, with its office occupancy is the highest in the country, according to the Property Council of Australia, while Colliers data showed premium vacancy in the CBD is a healthy 6.6%.
“Perth is experiencing the strongest market conditions since the 2011 resources boom. The global flight-to-quality thematic for real estate is playing out in the Perth office sector, resulting in strong demand for highly sustainable and amenities premium grade assets,” said Brookfield managing partner and head of real estate in Australia, Sophie Fallman.
“Brookfield was able to achieve 100% office and retail leasing commitments at our newly completed One The Esplanade, which underscores the strength in demand for space that is additive to the workplace experience.”
Cbus Property’s CEO, Adrian Pozzo, said that Nine Elizabeth Quay presented “an invaluable opportunity to re-enter the Perth office market” following its 140 William Street 10 years ago.
“It is great to be back,” Pozzo said.
“In recognising the prime location of the site in the heart of the landmark Elizabeth Quay precinct, we seized the opportunity to partner with Brookfield to deliver another industry-leading commercial office building for Perth.”
Nine The Esplanade will join Cbus Property’s $6 billion carbon-neutral office portfolio across Australia, which Vozzo said reinforced its aspiration to “deliver the most sustainable office portfolio in the country”.
Nine The Esplanade is targeting a 6 Star Green Star rating, a 5.5 star NABERS Energy rating and IWBI WELL Gold Core certification.
Nine The Esplanade has already received development approval, with early site works commencing in the past December quarter. Completion is anticipated for 2025.
