St Martins Centre bid withdrawn

A deal to purchase St Martin’s Centre from the Kuwaiti government has fallen through, with Melbourne-based Quintessential Equity no longer targeting the asset.

The complex at 44 St Georges Terrace was put on the market in May last year, for the first time in more than three decades.

The seven-building development includes 47,124 square metres of net lettable area across a 7,456sqm site, anchored by the 34-storey St Martins Tower.

The centre, believed to be the largest single landholding in Perth, also houses the state’s only revolving C Restaurant.

Quintessential Equity, which emerged as the main bidder late last year, has withdrawn its bid on the building.

It is unclear why the deal fell through, but sources say a lack of information was provided to Quintessential Equity during the due diligence phase.

In addition, industry commentators have suggested the asset is particularly complex due its abundance of aluminium composite panels, or ACP.

Following the Grenfell Tower fire in 2017 in the UK, where aluminium cladding was identified as a source of rapid fire spread, governments have implemented bans on using ACP in future multi-storey developments.

In WA, building owners are working to remediate existing assets containing ACP following a state government review into the use of combustible cladding.

Perron Group is part way through a multi-million refurbishment of Central Park in Perth, replacing the ACP on that building.

Real estate agent Savills, which was appointed to market the St Martins Centre on behalf of Kuwait's sovereign wealth fund, would not comment on the status of the deal.

At the time the centre was brought to market, Savills associate director of capital transactions Barney Dear said the asset offered a diverse income profile and repositioning opportunities.

“In addition to the significant commercial accommodation, the property offers over 6,000 square metres of retail net lettable area across a mix of modern retail tenancies and heritage listing retail buildings, including sixty-seven metres of continuous frontage to Perth’s premier retail destination in Hay Street Mall,” Mr Dear said in May.

Quintessential Equity declined to comment.