29/04/2021 - 15:28

Hesperia proposes Graylands redevelopment

29/04/2021 - 15:28

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Hesperia Property has submitted a proposal to repurpose the Graylands Hospital site for future urban infill development, via the state government’s Market-Led Proposals process.

Hesperia proposes Graylands redevelopment
The state government announced its intentions to decommission and divest Graylands Hospital earlier this year. Photo: Gabriel Oliveira

Hesperia Property has submitted a proposal to repurpose the Graylands Hospital site for future urban infill development, via the state government’s Market-Led Proposals process.

The Market-Led Proposals process (MLP) encourages unsolicited approaches from the private sector proposing to; purchase a government-owned asset; building or financing infrastructure; or providing goods and services. 

Hesperia has now been invited to the second stage of the MLP process, which gives Hesperia a first-mover advantage in the future selection of a developer for the project - if the state government considers its proposal feasible. 

Further details on the proposed urban infill project are yet to be unveiled, however, Hesperia has now been invited to complete a full business case for the potential to repurpose the Graylands Hospital site with the Department of Planning, Lands and Heritage (DPLH), in consultation with other impacted agencies, if required. 

Business News contacted the DPLH, Department of Finance and Hesperia for comment.

The Department of Finance forms part of the MLP steering committee and a spokesperson said it did not comment on live processes. 

"The state recognises the confidential nature of submissions and endeavours to treat them accordingly, subject to the disclosure requirements contemplated by the MLP Policy, the terms and conditions and government’s public disclosure and accountability obligations," the spokesperson said. 

Hesperia founding director Ben Lisle told Business News the company was pleased to proceed to stage two and that it looked forward to continuing to work through the MLP process alongside key stakeholders. 

Mr Lisle said in respecting the MLP disclosure process, Hesperia was unable to make further comment on the proposal's development scope or scale at this time. 

"We are at the early stage of the process... this is a long process with a lot of stakeholders that we have to engage and we're very keen to work with them in stage two," Mr Lisle said.

"Our objective is to deliver projects that help take Western Australia forward." 

Hesperia’s proposal follows the establishment of the Department of Health and the Graylands Reconfiguration and Forensic taskforce in January this year. 

The taskforce was created to inform the state government’s planning and investment decisions relating to the Graylands Hospital site, forensic services and the neighbouring Selby Older Adult Mental Health service. 

Those services were earmarked to be decommissioned, divested and replaced with contemporary infrastructure and services as part of the WA Mental Health, Alcohol and Other Drug Services Plan 2015-2025. 

Chaired by former Health Minister and attorney general, Jim McGinty, the taskforce consists of seven public sector leaders, including the Mental Health commissioner Jennifer McGrath, the Department of Health director general David Russell-Weisz and Department of Justice director general Adam Tomison. 

As part of the MLP process for the Graylands site, the state government notes all planning, feasibility and due diligence must first be completed in collaboration with the taskforce. 

The Graylands Hospital site proposal is Hesperia's second MLP to come to light: the group has also lodged a proposal for a film studio at Victoria Quay in Fremantle, after the state government called for submissions for facilities that catered to the state's growing screen needs. 

Other MLP’s in the mix include Cedar Woods Properties' proposal to redevelop land surrounding the Swanbourne train station

That proposal is subject to further analysis of the rail corridor and a state-run masterplan process, however, like Hesperia, Cedar Woods has been granted first-mover advantage with its proposal progressing to stage two.

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