Rio’s move plays part in resources city hitting straps

Brisbane’s leasing market has sprung into life with Rio Tinto readying to shift from its long-time Queensland headquarters.

Artist's impression of Ashe Morgan and DMann Corporation's planned Midtown Centre tower in Brisbane

Brisbane’s leasing market has sprung into life with Rio Tinto readying to shift from its long-time Queensland headquarters into a new $500 million tower proposed by financier Ashe Morgan and developer David Mann.

The city’s leasing market has picked up this year with office vacancy rates falling. It has spurred a wave of new proposals alongside further precommitment deals as the resources city hits its straps.

Rio’s move from its Albert Street premises, owned by Dexus, will see the new tower launched in Brisbane ahead of rival projects by Charter Hall, Investa and private players, some of which had switched their tower plans from apartments into offices.

The resources group will take up about 20,000sq m for 10 years with a gross rental of about $850 per sq m. Knight Frank brokered the leasing deal but declined to comment.

The joint venture between Ashe Morgan and DMann Corporation secured approval for a 26-storey modern office block in Brisbane’s CBD last March.

The Midtown Centre project will merge two dated office buildings at 155 Charlotte Street and 150 Mary Street into a single new office tower, surrounded by a laneway precinct. The tower will comprise 42,000sq m of A-grade office space and a campus-style podium with floor plates that are some of the largest in Brisbane.

Rio confirmed its Brisbane Hub would shift from 123 Albert Street to the heritage-listed Midtown Centre project.

It had moved into Albert Street in 2011 after precommitting to about 30,000sq m when the tower was still in planning. It later subleased some space to Suncorp as the resources industry slowed.

The resources giant chose the new property for its targeting of a 5-Star Green Star office rating and larger floor spaces. The Ashe Morgan and DMann venture is aiming to complete the project by mid-2020.