Mining billionaire Andrew Forrest’s private company Fiveight has moved on a Perth office tower for around $55 million, signalling plans for a further push into property in Western Australia and Australia’s east coast markets.
Fiveight announced its agreement to purchase the Perth CBD office tower at 190 St Georges Terrace, a 12-level A-grade office building.
Fiveight is a company of Tattarang, the Forrest family’s private commercial group, specialising in property development and investment.
On its latest purchase, Tattarang chief investment officer John Hartman said Fiveight would play a major part in the group’s investment plans in the years ahead.
“Property is a big focus, you will see us being more active in the market both in Western Australia and on the east coast,” Hartman said in a statement.
Fiveight is one of Tattarang’s six business arms, which include Harvest Road, ShortFin Mako Marine, Wyloo Metals, Squadron Energy and Z1Z— which recently acquired the Australian footwear brand R.M. Williams.
Hartman said the company has a flexible investment mandate across both active and passive asset classes.
“This flexibility and appetite for diversity gives us the broadest potential investment opportunity.”
Other assets in Fiveight’s portfolio include Perth’s Old Swan Brewery, which dates back to 1879, and was purchased in 2019 under Forrest’s then-named Minderoo Commercial Group (rebranded to Tattarang in May) and the Exmouth Caravan Park which is under an $85 million redevelopment into luxury eco-resort.
Confirming the Perth purchase, Fiveight chief executive John Meredith said the group was planning a refurbishment of the building as part of its value-add, repositioning strategy.
“We see an attractive opportunity to invest in this building and position it as a boutique, A-grade offering,” he said.
The Terrace building was originally developed in 1982 by Lord Alistair McAlpine.
On the latest commercial purchase, Meredith said Covid-19 had presented new challenges in the office sector, but that a physical workplace was “irreplaceable when it comes to culture, communication and innovation”.
“Covid-19 has reinforced the need for building owners to think proactively of the needs of tenants and their employees when it comes to workplace design.”
Forrest's Fiveight was selected by the Western Australian government in May as preferred proponents to redevelop the Perth power station, alongside Kerry Stokes' Australian Capital Equity.
The joint venture partnership is one of five shortlisted proponents for the site including Mirvac, Frasers Property, Lendlease and PowerHouse City.