Andrew Forrest’s private company is expected to proceed with the redevelopment of the East Perth Power Station, after Kerry Stokes’ Australian Capital Equity backed out.
Andrew Forrest’s private company looks set to go it alone on the redevelopment of the East Perth Power Station, after Kerry Stokes’ Australian Capital Equity backed out.
The private businesses of the two billionaires were jointly chosen to redevelop the old power station and neighbouring land in April 2020.
At the time, the state government said $218 million was to be spent within four years, including $50 million of public spending to prepare the site for redevelopment.
Reporting last year suggests the government’s bill blew out to $112 million.
It’s understood ACE withdrew from the deal months ago.
Business News understands Tattarang business Fiveight will still pursue the project, which will redevelop nine hectares of land alongside the Swan River.
An artist impression of how the development may look. Photo: DevelopmentWA. Artist: Kerry Hill Architects
That land will become a residential, commercial, recreational and tourism precinct.
It is unclear if the project will include a new joint venture partner.
Mr Forrest's company will have just weeks to move on its plans in collaboration with the state government’s DevelopmentWA.
An exclusive period for negotiations is set to expire on 3 March 2023, following an extension last year.
It comes after Business News revealed tensions between the two billionaires yesterday.
Mr Forrest claimed a dispute over a trucking contract, which was awarded by Fortescue to Germany’s Liebherr instead of Seven Group’s WesTrac, had soured the relationship.
Seven Group chair Ryan Stokes extended an olive branch in a statement this morning, however.
“(Seven Group Holdings) and WesTrac consider FMG one of our most important and highly valued customers, we will do anything to support them in their mining and broader ambitions,” Mr Stokes said.
“We value the relationship we have throughout the organisation."
A spokesperson for the state government confirmed ACE and Fiveight were not proceeding with their Koomba Kalark Joint Venture for the site.
DevelopmentWA would continue to work with “the remaining proponent”, however.
“The East Perth Power station has been an eyesore and a derelict site for more than 40 years,” the spokesperson said.
“The site is at the eastern gateway to our City and it should be revitalised into a site all of Western Australia can be proud of and access.
“The state government is fully committed to the redevelopment of the East Perth Power Station, and has delivered several de-constraining works to prepare the site, including removal of gas infrastructure, contaminated subterranean coal handling structures and removal of asbestos from the power station itself."
