Homeswest tipped as buyer

HOMESWEST is negotiating to purchase the failed retirement project Shenton Village out of receivership, according to industry speculation.

Earlier this year Bankwest called in receivers PricewaterhouseCoopers to recover more than $20 million invested in the retirement village, which had failed to sell after two years of marketing.

Launched in August 2002 by Shenton Park Retirement Village Pty Ltd, the 66-unit retirement complex, built on the site of the old Shenton Park Hotel on Nicholson Road, had attempted to sell its units on a lifelong lease contract for between $285,000 and $435,000.

More than 20 expressions of interest were received for the property after it was advertised earlier this year.

However, it is believed any sale would be difficult due to the property’s ownership structure and financial arrangements, which were designed work as a tax-effective investment and have been further complicated by guarantees provided by at least one party involved in funding the construction.

Individual investors who part financed the development are understood to be owed around $7 million.

“This thing is so complicated,” one source said.

“There are a lot of investors and a lot of issues.”

According to sources Homeswest is in the preliminary stages of acquiring the failed private development.

Department of Housing of Works spokeswoman Di Dickson would neither confirm or deny the speculation that the Homeswest was involved in the process of purchasing the village and would not assist with any further inquiry.

Earlier in the year, Homeswest chief executive Greg Joyce was reported as saying that Homeswest was interested in the development and that the agency would soon be in a position to make an offer.

Housing and Works Minister Nick Griffiths was unavailable for comment.

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