Rio Tinto has signed to be the anchor tenant of BGRE’s 27-storey office tower at Elizabeth Quay, putting to rest months of speculation about the building’s lead occupant.
BGRE’s project is a commercial office development in the Elizabeth Quay precinct and the appointment of a single major tenant is a notable step for the scheme.
Elizabeth Quay is the riverfront precinct in central Perth that has become a focus for new office and mixed-use developments in recent years, and this tenancy confirms continued corporate interest in the area.
Rio Tinto is a major resources company with significant operations in Western Australia, and securing a central Perth office aligns with the presence large corporates typically maintain in state capitals.
In commercial property practice, an anchor tenant often strengthens a developer’s case for construction financing and can encourage additional leasing interest from other organisations seeking premium office space.
For BGRE, the signing removes a major question mark around pre-leasing, which is commonly required before lenders advance development capital and before construction can move full steam ahead.
The agreement is likely to affect the local office market by adding demand for high-quality, centrally located floor space and by increasing activity among contractors, architects and fit-out specialists engaged by large-scale projects.
BGRE and Rio Tinto have not disclosed lease length, the exact amount of space the company will occupy, or a completion timetable for the tower.
The deal marks a clear milestone for the Elizabeth Quay development and will be watched by tenants, investors and market participants tracking Perth’s commercial property sector.
