South32 to make Perth its home

BHP Billiton’s proposed spin-off company South32 has signed a ten-year lease in a Perth office building.

Should shareholders vote up the demerger in May, South32 will lease 8,300 square metres of the 52-storey Bank West building.

Under demerger plans, BHP will create a new company that will take its aluminium, manganese, nickel and silver assets.

The company is expected to inherit 25,000 employees and will have a primary listing on the Australian Securities Exchange, a secondary listing on the Johannesburg Stock Exchange and a standard listing in London.

Brookfield Prime Property Fund (BPA) owns 50 per cent of the office building, and said along with a failed demerger, the lease may also be terminated by BHP in other circumstances with appropriate compensation.

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