Western Australian Country Health Service plans to build a residential development in South Hedland have cast doubt on a neighbouring private project from which the state government has recently withdrawn support.
Western Australian Country Health Service plans to build a residential development in South Hedland have cast doubt on a neighbouring private project from which the state government has recently withdrawn support.
WACHS has bought an 8,504 square metre lot on Cottier Drive in South Hedland’s central business district across from the hospital with the aim of building homes for health staff.
Neither WACHS nor government selling agent LandCorp have revealed the price or details about the residential development.
The planned WACHS development is directly adjacent to The Junctions on Colebatch, a 1.2-hectare development which last month lost a $19.6 million government investment commitment.
WACHS has committed to building a medical clinic at The Junctions and developer Sunview Nominees had hoped it would buy some apartments for health staff to live in at the complex.
However, following the state’s withdrawal of financial support for The Junctions, the future of the 104-apartment, 17-commercial-space project is understood to be in doubt.
Sunview Nominees director Mike Jessop said he was disappointed in WACHS’ plan to build its own residential development, but declined to comment further as he continued to negotiate with the department.
Sunview was considering a plan to build the commercial aspect first while it sought further funding, including bulk investment from Asia.
A WACHS spokesman said it had bought the land from LandCorp to provide accommodation for future workers at the hospital, known as the Hedland Health Campus.
Both LandCorp and WACHS asked that further enquiries be made to the other party.
The Junctions on Colebatch project is estimated to cost $72 million.
Last month, Business News reported the government withdrew $19.6 million for the purchase of 38 apartments at The Junctions citing its failure to meet pre-sales targets, statutory approvals and finance conditions.
At the time, Mr Jessop said he believed the government had taken the first opportunity to withdraw because of the pressure it was under following a backlash over its $30 million commitment to 50 apartments at Finbar’s Pelago development in Karratha.
Business News recently revealed small business concern at the impact of negative press and the government’s reaction to it.
Karratha’s only small bar owner, Bart Parsons, praised the state’s role in Pelago, which he said has led to increased private investment, pointing to the fact that he had already signed a 20-year lease with Sunview Nominees in South Hedland to open a similar venue at The Junctions.
