Leighton Properties Pty Ltd said it expects to lodge a bid for the Capital Square site after confirming that negotiations with the property's joint venture partners, Saville Australia and Babcock & Brown, have been terminated.
In a statement, Leighton said negotiations had ceased after the parties were unable to finalise terms.
Last month, WA Business News reported that Leighton would take a stake in the $1.3 billion project after submitting a development application with the City of Perth.
The application was for a three commercial buildings of 31, 18 and two storeys in height which would sit alongside a tower of 274 apartments.
Today Leighton Properties managing director Michael Barr said the terminated discussions related to taking a stake in a revised stage two of the project for 59,000 square metres of office space across two buildings.
However he said Leighton is expected to retain an interest in developing the site and is expected to lodge a bid for the site through the sale process.
"Unfortunately the owner of the site does not wish to progress Stage 2 of the project and has advised us that they will be putting that site to the open market," Mr Barr said.
"We remain open to the possibility of developing the site either solely or with a joint venture partner but are also pursuing several other opportunities in Perth and across the Australia."
