PETER Laurance’s Pivot Group is poised to start construction on a multi-million dollar office development in West Perth.
The development group has received planning approval for its four-storey, 4,000 square metre office building at 18-24 Parliament Place, and is now waiting for final approval from Parliament House Precinct Committee.
The development, which is understood to have a project value of between $10 million and $20 million, will go ahead without tenant pre-commitment.
Pivot Group project manager Jon Italiano said the company had six tenants close to signing. Due to strong tenant interest, the decision was made to move ahead with the project, he said. Pivot has held the site, which also covers 11-21 Hay St, for about two years.
Most of the tenants considering relocation to the new building were existing West Perth tenants, he said, looking to expand and upgrade.
“There are a lot of old buildings in West Perth. I think over the next five to 10 years many will be raised and new constructions will go up,” Mr Italiano said.
Pivot Group has established a strong track record in West Perth, having developed headquarters for SGIO, Phillips Petroleum and Sons of Gwalia. Pivot later sold the buildings to the Commonwealth Property Office Fund for $70 million
The Pivot Group is also moving ahead with plans to redevelop prime CBD retail site, 100 St Georges Terrace, which is owned by AXA Statutory Fund and managed by Deutsche Asset Management.
Pivot Group bought the site last September after an option held by Futuris Corp subsidiary Caversham Properties was terminated.
Caversham had secured a $30 million option over the site in 2001 but failed to secure approval for its $120 million development proposal, which included a 27-level office tower with a four-level retail arcade and cinema complex.
Pivot Group recently submitted plans to the City of Perth for development of a retail mall linking Hay Street to St Georges Terrace with an office tower that could be developed in stages.
