Planning Minister John Day believes the state government's planned major inner city developments are achievable but admits that its role as the driver of the Waterfront, Riverside and CityLink will limit commitments to new projects such as the former East Perth power station.
Speaking at the confirmation of Lend Lease as its preferred proponent to develop a four-hectare Waterbank Precinct site as part the East Perth Redevelopment Authority's 40ha Riverside project, Mr Day said the $93 million state component for the site's development was budgeted for, along with the funds needed to get CityLink and the Waterfront underway.
But, when asked about the former power station site, he said there was a limit and it would most likely be a couple of years before the state ventured near any new developments like these.
"We can only do so much at one time," Mr Day said.
The Waterbank site is another big win for Lend Lease which has been expanding its tentacles in Western Australia over the past two to three years. In the development space it won the right to joint venture with Landcorp on a major part of the Alkimos residential land project around two years ago.
Waterbank is estimated to have a $1 billion development value, taking about a decade to complete starting with preparatory work in 2013 and the first building completed three years after that.
Mr Day said Lend Lease had been selected ahead of a joint venture between Frasers Property Group and Brookfield Multiplex to develop the Waterbank site, adjacent to the Causeway Bridge.
Lend Lease will work with the East Perth Redevelopment Authority to conclude a project development agreement in the coming months.
Lend Lease group chief executive Steve McCann said in an announcement that the company was delighted to have been selected for the project.
"This large scale urban redevelopment plays to Lend Lease's core strengths and enables us to leverage our integrated model, including development, construction and funds management," Mr McCann said in a statement.
"The project fits with Lend Lease's strategic plan to further expand our development operations in the rapidly growing Western Australian market, building on the communities, construction, retail and retirement living operations we already have in the state."
Mr Day said key features of Lend Lease’s design included the creation of an inlet including a public beach and a landmark tower at the entrance to the city.
The plan also incorporates a hotel development, shopping centre, and new residential and office accommodation.
“The design approach taken by Lend Lease allows for diversity in residential accommodation, quality public spaces and provides a variety of opportunities to interact with the water,” Mr Day said.
The area is expected to yield between 670 and 720 new dwellings, 25 of those set aside for social and affordable housing.
Building heights will vary from three to 42 storeys.
The state government has estimated the Waterbank Precinct will attract $1 billion in investment from the private sector, with between 11,050 and 17,050 square metres of commercial and retail space included in the plan.
