18/04/2019 - 14:34

3 Oceans scraps Scarborough project, seeking JV

18/04/2019 - 14:34

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Developer 3 Oceans Property is looking for joint venture partners for a redesigned Iconic Scarborough project, after it announced the $450 million project is officially on hold due to the current market making the development financially unviable.

3 Oceans scraps Scarborough project, seeking JV
3 Oceans says it is assessing interest from potential joint venture partners.

Developer 3 Oceans Property is looking for joint venture partners for a redesigned Iconic Scarborough project, after it announced the $450 million project is officially on hold due to the current market making the development financially unviable.

In a statement, 3 Oceans said following the project's approval on 27 June 2018, it commissioned a comprehensive review of the project to ensure it would stack up financially. 

"Unfortunately the audit has determined that in the current market this project is not financially viable," it said.

"3 Oceans remains committed to delivering a high quality, iconic development that directly responds to the current market, and delivers real benefits to Scarborough and the broader community.

"However, the project needs to be financially viable for 3 Oceans to proceed."

It said the board believed a redesign of the project would result in a more feasible development that better responded to the market.

"In considering options to progress the project, 3 Oceans is assessing interest from potential joint venture partners," the company said.

"In the interim, 3 Oceans will discuss possibilities for temporary activation of the site with the City of Stirling and the MRA."

Following the rejection of an initial proposal In December 2017, in June 2018 the Metropolitan Redevelopment Authority gave 3 Oceans the green light to progress its twin-tower mixed-use development on the corner of West Coast Highway and Scarborough Beach Road.

The MRA initially rejected Iconic Scarborough largely on the basis that the application was considered to be a significant overdevelopment of the site and that it delivered inadequate design outcome.

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