28/02/2006 - 21:00

Receivers to offer Westpoint sites

28/02/2006 - 21:00

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Receivers will soon put several former Westpoint sites on the market for sale in an attempt to recover cash to pay creditors following the property developer’s recent collapse.More than 4,000 investor

Receivers will soon put several former Westpoint sites on the market for sale in an attempt to recover cash to pay creditors following the property developer’s recent collapse.

More than 4,000 investors have lost $300 million as a result of the Westpoint failure.

A plan to build more than 1,000 apartments in two towers on the Emu Brewery site was designed as the jewel in the Westpoint crown.

It is understood that receivers Korda Mentha will announce a sales agent within the next few weeks.

Also under Korda Mentha’s control, and understood to be put to market soon, will be the Paragon Commercial Syndicate (which holds Paragon tower and arcade and apartments), as well as Warnbro Fair Shopping Centre.

Due to the likely requirement for any sale process to be transparent and demonstrate the highest price was achieved by receivers, the properties will be put to market through sales agents.

The Emu Brewery site is likely to fetch well above the $25 million Westpoint bought it for in 2003, and is expected to generate strong interest from middle to larger size developers able to acquire and develop the site.

Listed residential developer Australand general manager WA, Chris Lewis, told WA Business News the company would look at the site, but would not run the current scheme approved for the site.

“We will look at the site on a basis that suits us, and don’t see any value in the current development approval,” he said. “I’d imagine anyone purchasing a site of that calibre would sit down with council and come up with a new proposal.”

Coldwell Banker Pro-Property principal Brett Wilkins said he believed there would certainly be interest in the site, and that there were developers from the several eastern states looking to enter the WA market.

“Developers for that kind of property are not a dime a dozen, and the cost pressures of making that kind of development stack up are difficult, despite the demand for city apartments,” Mr Wilkins said.

He added that an office tower on the site was not out of the question.

A representative from the City of Perth said that, under the City’s Town Planning Scheme, there was nothing preventing an office tower on the site, and that it was an acceptable land use, depending on the specifics being proposed.

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