Invesco stakes claim in Chevron’s future Perth headquarters

Aerial view of Perth’s Elizabeth Quay at sunset.
Aerial view of Perth’s Elizabeth Quay at sunset.

Global house Invesco has stamped its authority on Perth’s property market with the purchase of a half-stake in an $800 million skyscraper being developed by Canadian giant Brookfield as the headquarters of oil and gas giant Chevron.

Invesco will take a 50% interest in One The Esplanade in the Elizabeth Quay precinct as building is soon to get under way.

The project is being developed by Brookfield Asset Management, which will retain a half interest. Brookfield has a hefty development pipeline in Sydney, Melbourne and Perth, and has been selling down stakes to such buyers as AMP Capital, ISPT and Hong Kong’s HKMA.

Brookfield bought the Swan River frontage from Chevron last year under an agreement to develop a 29-level, 57,000sqm premium-grade office building including retail and restaurants.

Chevron Australia will be the anchor tenant, committing to a 15-year lease for about 78% (42,000sqm) of the space.

The Australian revealed in May last year that Invesco was heading the race to secure the half interest in the tower and while details remained under wraps, it showed a yield of about 5%.

Brookfield head of real estate in Australia Sophie Fallman says this is a “strategically important project” that demonstrated the strength of the Perth commercial property market and ­underlines WA’s resurgence

Invesco head of Asia Pacific core funds Ian Schilling said the Elizabeth Quay complex would be one of the city’s best buildings.

“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,” he says.

JLL’s Rob Sewell, Simon ­Storry and Paul Noonan and Cushman & Wakefield’s Josh Cullen and Mark Hansen brokered the off-market deal.