Two major projects considered vital to the revitalisation of Subiaco are closer to reality, with a 16-storey tower at the Pavilion Markets site to win planning approval and construction imminent on a $100 million hotel, cinema, office and retail complex at 500 Hay Street.
Both projects are expected to provide activation in a suburb preparing for life after football, with AFL games scheduled to leave Domain Stadium for the 2018 season, once the new Perth Stadium is completed.
At the Pavilion Markets, Sydney-based D2 Property’s proposal has been recommended for approval when the metropolitan west development assessment panel meets midway through next week.
According to DAP agenda documents, the project will comprise two buildings containing 292 apartments, a small bar, a rooftop tavern, retail premises, restaurants and fast food outlets with a base construction cost of $120 million.
The buildings will be connected by a pedestrian laneway, which will provide public arcades, while the planning approval will be subject to a long list of conditions and valid for four years – two years longer than a standard approval due to the scale of the proposal.
The Pavilion Markets project has been problematic for the City of Subiaco, which voiced its displeasure midway through last year when Planning Minister John Day moved to allow up to 16 storeys to be built at the site.
Buildings of up to 16 storeys will only be allowed on the rear portion of the site, with a three-level restriction on Roberts and Rokeby roads.
Subiaco council rejected that amendment in 2011, advocating instead for a more modest development of up to eight storeys.
Despite the council’s opposition, a poll of Subiaco residents indicated overwhelming support to the redevelopment of the dilapidated markets site, with just 2 per cent of 729 submissions in opposition to the proposal.
Meanwhile, Cooper & Oxley is understood to be close to finalising a contract with China-backed Dradgin Pte Ltd, to build a nine-level retail, cinema, hotel and office project at 500 Hay Street.
The hotel will comprise 220 rooms, the office building around 10,000 square metres of lettable space, while a new plaza will be created to provide new cinemas as well as shopping and dining options.
An artist's impression of the hotel component of the proposal.
Business News understands Cooper & Oxley was set to finalise a handshake agreement for a $90 million construction deal with Dradgin this week, with building to begin in coming months.