Investigations are underway to redevelop the Kuwait-government owned asset, after a failed bid to divest the property.
The owners of Saint Martins Centre have confirmed they are looking to overhaul the seven building complex, following a failed bid to sell the asset.
Kuwait-government owned St Martins Properties is working with Perth’s DMG Property to examine redevelopment options for the 40 to 50 St Georges Terrace property.
“During the next 18 months, DMG and the local St Martins Centre team will engage with leading architects, specialist consultants and a range of other CBD stakeholders to detail the potential for contemporary office, commercial, leisure and hospitality space,” a St Martins Properties spokesperson said in a statement.
The company added that as a long-term investor in Perth, it appreciated “the importance of its overall site to the development, growth and economic activity of the city centre”.
“The assessment process will include looking at opportunities to maximise street level activity on the site and to improve north south pedestrian movement.”
The statement, issued today, follows months of speculation that the owners would redevelop the centre, after a sales campaign for the property failed early last year.
St Martins Centre includes 50 St Georges Terrace, which anchor tenant Calibre exited earlier this year, as well as 44 St Georges Terrace, where the revolving C Restaurant operates from.
Additionally, the centre includes 40 St Georges Terrace, which Koorda Mentha used to occupy, and a retail component that extends to Hay Street.
St Martins Properties developed the asset in 1976, when it was Perth’s tallest building.
The property includes 47, 456 square metres of net lettable area on a 7,456sqm site, making it one of Perth’s largest landholdings.
Its tallest tower, at 44 St Georges Terrace, stands at 34 levels.
Industry sources say occupancy levels across the three towers is less than 30 per cent.
Business News understands that the anchor tenant for 44 St Georges Terrace, the Industrial and Commercial Bank of China, is in the market to vacate the centre, as is the largest tenant in that tower law firm McCabe Curwood.
Aluminum cladding on one of the towers would make a refurbishment job costly, with estimates to replace the cladding alone at $70 million.
St Martins Properties said there would be “no substantive changes” to the centre while it explored redevelopment opportunities.
“Current and new tenants will be able to operate from the various buildings and arcade without interruption,” the company said.
Melbourne’s Quintessential Equity withdrew its bid to purchase the asset last year.
