Why Gina Rinehart’s latest $240million purchase shows the WFH dream may finally be over

Australia’s richest person has spent around $240 million on an office tower for her staff, a move that will strike fear in the hearts of those who still prefer to work from home.

Mining magnate Gina Rinehart bought 175 Eagle Street in Brisbane’s CBD from Charter Hall, a real estate investment trust specializing in office buildings.

The sale of the 19-storey ‘A-grade’ building, which offers ‘breathtaking views of the Brisbane River and Kangaroo Point’, signals a cautious return to high-end offices at major employers.

Vacancies in luxury office buildings that peaked during the Covid pandemic, when most office workers worked from home, are only now starting to fill again.

175 Eagle Street features two levels along the riverwalk with retail space, a mezzanine level and ‘up to 1,159 square meters of column-free floors’

The office’s returns are further reflected in the fact that shares in Charter Hall rose more than 10 per cent on Wednesday, according to reports The Australian.

David Harrison, CEO of Charter Hall, said the sale gave credibility to his belief that the best office towers will survive the post-Covid crisis.

It comes after a poll of Australian bosses showed the majority think the days of working from home are numbered.

A global survey of more than 1,300 CEOs conducted by consultancy KPMG found two-thirds of Australian bosses believed traditional white-collar roles would mean a full-time return to the office within three years.

Only a minority thought jobs would remain a hybrid separation between home and office, as is now the case for many city workers.

And those who enjoy the flexibility of the occasional ‘WFH’ day may want to reconsider: a whopping 75 percent of Australian CEOs said they would reward employees who put in the extra effort to come into the office in terms of salary increases, promotions and more. interesting work.

Another survey found that nearly 40 percent of senior executives planned to differentiate wages between remote and in-office workers in the next three to five years.

A further 13 per cent went further and said homeworkers would see not only their wages fall, but also their working conditions, according to the global poll by law firm Herbert Smith Freehills.

This is Ms Rinehart’s (pictured) second major office purchase after buying a 14-storey office tower in Brisbane for more than $100 million in February.

Ms Rinehart’s latest addition consists of two levels along the riverwalk with retail space, a mezzanine and ‘up to 1,159 square meters of column-free floors’.

For her millions, the resources magnate and her staff will benefit from “contemporary furnishings that offer a sense of prestige and progressiveness.”

“There is also an abundance of natural light throughout the building, creating a warm, inviting environment that connects people to the green outdoor spaces,” claims an advertisement for the office building.

In February, Ms Rinehart bought a 14-storey office tower in Brisbane for more than $100 million.

Although headquartered in Perth, her company Hancock Prospecting has a large presence in Queensland through its investments in energy and agriculture.

The Brisbane building is the latest addition to its property portfolio, which includes $75 million worth of commercial properties along the Sunshine Coast, with apartments in Noosa and Brisbane.

Brisbane is currently undergoing a $45 billion infrastructure boom ahead of the 2032 Olympics.

Spikes in commodity prices have seen Ms Rinehart sail into 2023 firmly entrenched as Australia’s richest person, according to the latest release. Australian Financial Statement rich list.

Her private company has made nearly $20 billion in profits in the past four years alone. Her personal wealth is a whopping $37.4 billion.