Rio Tinto signs as anchor tenant for BGRE's Elizabeth Quay tower

Business News WA reported on Friday that Rio Tinto has signed as anchor tenant of BGRE’s 27-storey office tower at Elizabeth Quay, ending months of speculation over who would commit to the project.

Why it matters

A Rio Tinto commitment gives BGRE a major, creditworthy tenant locked into its Elizabeth Quay office tower before the building is complete. Developers typically rely on a named anchor tenant to help secure construction finance and to support progressing approvals for a project of that scale, since financiers and planning bodies look for pre-commitment evidence before a tower advances. For the Perth CBD office market, the signing is a sign that large corporate occupiers are still prepared to commit to new office towers rather than only renewing space in existing buildings. One confirmed tenant of Rio Tinto’s size materially changes the risk profile of a 27-storey tower for a lender assessing the project, even before the remaining floors are leased, because a single large pre-commitment reduces the amount of speculative space a developer needs to carry to settlement. Business News WA did not publish the lease term, floor area or any financial terms of the agreement, and those details could not be verified elsewhere before publication. Elizabeth Quay has drawn a string of commitments from large occupiers and operators in recent years; AusDev has reported that hotel groups are also targeting the broader Perth CBD precinct around the Quay, underscoring how the area has become a focal point for both office and hospitality investment.

The numbers

The confirmed project is a 27-storey office tower, developed by BGRE at Elizabeth Quay. Business News WA’s report, which sits behind a paywall beyond its opening paragraph, did not disclose the amount of space Rio Tinto has committed to within the tower, the length of the lease, any rental or incentive figures, or the tower’s expected completion date. No valuation or construction cost for the project was available in the material that could be verified. In the absence of those figures, this report is limited to what the outlet’s lede confirms: the tenant, the developer, the location and the building’s height.

What’s next

With an anchor tenant in place, attention turns to whether BGRE moves to lock in further tenants and a firm completion date for the Elizabeth Quay tower, and whether Business News WA or another outlet publishes the commercial terms of the Rio Tinto deal. The Australian Developer will update this story if the lease size, term or project timeline are confirmed on the public record.