Shenton Quarter buyers given finish date

Iris-PW has told buyers its $140 million Shenton Quarter apartment project will be finished by July, following months of turmoil at the Shenton Park development.

The developer, a joint venture containing Iris Residential, wrote to buyers last week indicating the anticipated end date, almost four years on from its commencement.

The nine-storey, 157-dwelling project has been beset with delays, with its initial completion flagged for mid-2022.

Iris became locked in a dispute with the project’s original builder, BGC, which walked off the job in October last year.

Queensland’s Gowdie Management Group was assigned to complete the development the following month.

BGC, the Construction, Forestry, Maritime, Mining and Energy Union and Australian Apartment Advocacy raised concerns about structural defects at the development.

AAA revealed that it was considering a class action on behalf of Shenton Quarter buyers late last year, and says eight buyers are still looking to get out of their contracts.

An Iris-PW spokesperson said developers did not have the right to release buyers from their contracts.

“More than 130 buyers are contracted at Shenton Quarter, and the overwhelming majority of them want to see the project completed and move into their new apartments,” the spokesperson said.

“Iris-PW does not comment on individual contracts. However, developers do not have the right to release presale contracts as they are used for financing for the overall project and require consent from all parties including lenders.”

In December, the state government signalled legislating mandatory audits on buildings during construction, through its building reforms.

At the time, Commerce Minister Sue Ellery said the reforms would increase consumer protections, modernise the way buildings were designed, approved and constructed in WA, and provide peace of mind that buildings were safe and constructed to the required standards.

AAA founder Samantha Reece called on Ms Ellery to order an independent party to conduct a dilapidation report on the building.

“AAA has been a vocal advocate of transparency for Shenton Quarter apartment buyers,” Ms Reece said. 

“However, our efforts to establish who has been given responsibility for conducting this dilapidation report and making its contents public has been frustrated at every turn.”

A state government spokesperson said that due to concerns raised by purchasers in the Shenton Quarter development, Ms Ellery “requested that Building and Energy liaise with key parties involved in the development and provide an enhanced level of oversight over the project.” 

“Building and Energy has met with new builder Gowdie Management Group, developer Iris-PW, building surveyor Code Group and the City of Nedlands, who are the permit authority,” the spokesperson said. 

“It has also undertaken an audit of the documentation. Building and Energy is satisfied the relevant parties have identified the rectification works required and these have or will be performed in a reasonable manner.”

The spokesperson added that a design engineer would be required to issue a certificate of structural adequacy for the building at the end of the project.

“This should give owners comfort about the building and that all known structural issues have been addressed,” they said.

“Building and Energy will request from the City of Nedlands a copy of all documentation submitted for the application for the occupancy permit at the end of the project, including the certificate of construction compliance issued by the building surveyor.  

“This will allow Building and Energy to audit the documentation and confirm that the requirements of the Building Act 2011 (WA) are being met and the parties have followed reasonable processes.”