The state government has announced a $580 million redevelopment of Perth's old Treasury building which will include a six star hotel, a 35 storey office tower and demolition of the adjacent Law Chambers building on Hay Street.
The redevelopment is part of an entire makeover for the St George's Cathedral Heritage Precinct, which will include a new library and a public plaza.
The project will be built by Mirvac CBus.
The City of Perth will build the $42 million library and public plaza.
The Old Treasury building will be developed by Mirvac with a 99-year lease and the office tower with a 25-year lease.
As part of the redevelopment the Law Chambers building will be demolished and the Public Trustees building will be refurbished and leased by the State Government.
Minister Assisting the Treasurer Bill Marmion said demolition of the Law Chambers Building would open up a public area that had for years been effectively blocked by the Law Chambers Building.
"The result will be more open space and better access between St Georges Terrace and Hay Street and the beautiful architecture of the former Lands Title Office will become visible from the street," Mr Marmion said.
The state government will also be the major tenant of the new office tower.
Premier Colin Barnett said that the redevelopment would create one of the most magnificent heritage precincts in the city.
Perth Lord Mayor Lisa Scaffidi said that the project will open up to the public an unattractive and under-utilised space which will be linked to the Old Treasury Building and the adjoining Land Titles Office.
"The current proposal is one that all parties have advised is financially viable and capable of being delivered," said Ms Scaffidi.
"Importantly, it will act as a catalyst for the long-awaited redevelopment and refurbishment of the Old Treasury Buildings and Land Title Office which have been vacant for 17 years," she said.
