01/05/2017 - 15:11

International groups to revive Perth City Link

01/05/2017 - 15:11

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A third student accommodation project has been proposed for Perth’s CBD, while a Hong Kong-based developer has been enlisted to build a residential, retail and entertainment complex as part of the Metropolitan Redevelopment Authority’s latest efforts to get things moving at the Perth City Link.

International groups to revive Perth City Link
Cedar Pacific says it will build a 550-bed student accommodation facility on this vacant land behind Perth Arena. Photo: Attila Csaszar

A third student accommodation project has been proposed for Perth’s CBD, while a Hong Kong-based developer has been enlisted to build a residential, retail and entertainment complex as part of the Metropolitan Redevelopment Authority’s latest efforts to get things moving at the Perth City Link.

The MRA today announced Brisbane-based Cedar Pacific was the successful bidder for a 3,000 square metre lot behind Perth Arena, where a 550-bed student accommodation facility has been proposed.

Cedar Pacific is a joint venture between Swiss investment group Pamoja Capital and Canada’s bcIMC, an institutional investment firm with more than $120 billion of funds under management.

The joint venture will partner with specialist student accommodation provider UniLodge to develop the student housing.

The plan follows recent movement on two student accommodation projects on Stirling Street, proposed by Devwest Group and Stirling Capital, respectively.

Last month, Devwest lodged a development application to repurpose the former Telstra building into a student housing project, while Stirling Capital applied for an early works permit for its neighbouring 500-bed student project.

The MRA today also announced Hong Kong-based developer Far East Consortium as its preferred bidder for three lots on Roe Street, where a range of boutique apartments and an integrated retail, hospitality and entertainment complex have been proposed.

MRA chief executive Kieran Kinsella said Far East Consortium would hold an international design competition for its project, to ensure it complements adjacent developments in the Perth City Link.

In August last year, the MRA announced Far East Consortium as its preferred tenderer for two lots adjacent to Perth Arena, where the Hong Kong-based developer is planning up to 350 apartments and a 250-room hotel, with the development valued at around $220 million.

The hotel will be operated by international hotels group Dorsett, while the MRA expects to receive a development application for the site in coming months.

Far East Consortium is the developer behind the $500 million Ritz Carlton & The Towers project at Elizabeth Quay, which is expected to be completed by 2019.

The developer put the hotel component of the project on the market late last year, however, Business News understands that an international sales campaign is yet to find a suitable bid.

More than $1 billion has been invested in the Perth City Link since 2008, with the range of works including the demolition of the Perth Entertainment Centre, sinking part of the Perth-Fremantle rail line and the $217 million new Perth Busport.

Construction of Yagan Square is ongoing, with contractor Doric expected to complete the job before the end of the year.

The new Labor state government has also committed to building an educational precinct on land above the Perth Busport, including a high-rise high school to cater for up to 1,500 students.

However, following completion of the commercial precinct at Perth City Link, Kings Square, in late 2015, the MRA has experienced mixed success in getting projects away on some of the link’s other lots.

Midway through 2015, the MRA announced that Thailand’s Minor Hotel Group would introduce its Avani brand of hotels to Perth, but those plans were abandoned by the end of that year.

National development giant Mirvac Group also pulled out of its Perth City Link commitments last year, backing out of a sales process for eight lots of the 13.5ha precinct.

Mirvac had assumed sole responsibility for developing the lots after its joint venture partner, Leighton Properties, withdrew from the Perth City Link in January 2016.

 

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