Axiom has made a mere $5 million investment in a $200 million office development in Perth’s St George Terrace, thanks to its largest shareholder, the Pivot Group.
Pivot’s move will allow Axiom to participate in 50% of the profit in the development which is expected to yield the 2008/2009 financial year.
Located at 101 St George Terrace, the property is a 17 level office building, which will comprise 29,000 sqm of office accommodation.
Axiom will enter into a joint venture with the Industry Superannuation Property Trust No. 2 over the project. ISPT are in the final stages of negotiations with international anchor tenants for the building.
Axiom said the strength of the Perth CBD premium office market vindicates the feasibility study, which shows Axiom will receive a significant return on its equity which will be paid by ISPT on practical completion, expected in late 2008.
“Your directors see this development as a defining moment for Axiom as it signifies a move away from its single project at Port Geographe near Busselton WA and into the wider property market.
“The board is actively investigating other opportunities in the commercial property market around Australia,” Axiom said.
By Adam Parsons
