THE WEST AUSTRALIAN – TUESDAY 16TH AUGUST 2006

Melbourne-based Cbus Property has flagged plans to make a major move into the Perth property market, targeting assets and development projects across the residential, industrial and commercial sectors.

A wholly-owned company of construction industry superannuation fund Cbus, Cbus Property is looking to boost its $1.3 billion property portfolio to $3 billion in the next three years, according to chief executive Kevin Fitzpatrick.

This meant the company had to look beyond its traditional Eastern States markets, he said.
Mr Fitzpatrick said the company had assets in Victoria, New South Wales and Darwin but had been overweight to the NSW and Victorian markets for some time.

Mr Fitzpatrick said the company was currently looking closely at several commercial and retail assets in WA and would also target broadacre residential subdivision opportunities.

Cbus Property had traditionally been a developer which had on-sold its properties but now aimed to acquire an income-generating property portfolio, he said.

Cbus Property's first bid to enter the WA market is as part of a consortium which has been short-listed to develop the State Government's 140 William Street mixed-use tower, competing with Grocon and Multiplex.

Treasurer Eric Ripper came under fire earlier this week for meeting Grocon boss Daniel Grollo on his recent visit to Perth, with Multiplex believed to have complained to the project's probity auditor.
A spokesman for Mr Ripper said previously auditor Gary Gliddon of Blaxfords Consultancy had looked at the issue and was satisfied nothing untoward had happened.

Mr Fitzpatrick, who is in Perth for meetings with consortium partners today, said he had faith in the State Government's probity process. He felt Grocon had a broader agenda than simply the 140 William Street process because they were looking at securing more projects in WA.

"We trust the probity pro~cess and trust that it will be done correctly. How the Government elects to deal with that is their issue," he said.

The State Government has committed to taking 22,000sqm of office space in the William Street development, which will feature a mix of retail and office space above a new railway station. It is due to be finished in 2009.

Mr Fitzpatrick said Cbus Property was not interested in developing the State Government's multi-purpose stadium project, preferring to stick to more traditional assets.

Cbus Property is one of a raft of Eastern States developers and property groups looking to move into the Perth market to capitalise on recent strength in the WA economy.

Mr Grollo has signalled Grocon's plans to become a major player in the Perth construction industry, while prominent Eastern States businessmen Daniel Besen and John Crane bought Perth landmark the Old Swan Brewery from Multiplex for $21.3 million last month and are now looking for more development and acquisition opportunities.

International finance group GE has acquired more than $277 million of WA property assets since late last year, and Sydney-based Charter Hall bought its first Perth property, Emirates House on St Georges Terrace, for more than $14.5 million in January.


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