Brookfield Asset Management will sell a 50 per cent stake in One The Esplanade in Perth’s Elizabeth Quay precinct to US investment house Invesco.
The global asset manager purchased the Swan River frontage from Chevron last year with an agreement to develop a 29-storey, 57,000sq m premium office building including retail space and food and beverage outlets.
The $800 million tower will serve as Chevron Australia’s corporate headquarters after the resources giant committed to a 15-year lease for about 78 per cent (42,000sq m) of the tower.
Brookfield managing partner and head of real estate in Australia Sophie Fallman says the project is a “strategically important” one that demonstrates the strength of the Perth commercial property market and underlines the resurgence of Western Australia’s economy.
“We’re pleased Invesco has come on board to this great development, which will deliver a premium-grade building to support Chevron’s growth aspirations.”
The tower, which broke ground this week, will be built by Multiplex, accommodating around 3,000 workers and offering views over the Swan River, Supreme Court Gardens and Langley Park.
Invesco managing director Ian Schilling said that One The Esplanade is an attractive investment.
“Perth provides an attractive yield premium to the eastern states with strong rental growth prospects, given its current position and the positive outlook for the Perth economy and the CBD office market.”
Brookfield’s development and operating specialist, Brookfield Properties, will deliver the project, which is due for completion in mid-2023.
A groundbreaking ceremony held on site this week was attended by premier Mark McGowan as well as representatives from Brookfield, Multiplex, Chevron Australia and Invesco.
Financial close on the investment is due in February.