Yagan Square’s $14m fix nears completion

The multi-million-dollar bid to revive the failed Yagan Square precinct will soon pay off as operator Nokturnl gears up to open the first restaurant from the hub's line-up of hospitality offerings.

Yagan Square is set to be the biggest hospitality offering in Perth's CBD, with 11 bars, three restaurants, a private dining space, a playground, and a beer garden.

When completed, the revived five-storey Yagan Square will be able to accommodate 2,500 patrons and more than 300 staff.

Nokturnl will open Italian restaurant Alba tonight, the first venue to be launched in the staggered reopening of the precinct.

The state government committed $8.4 million towards the redevelopment of the Yagan Square project, which has an overall cost of $14 million.

However, Business News understands $5.5 million of the state government’s funding went towards the Yagan Square construction while the $8 million figure included the public realm works.

It is understood Nokturnl’s own investment in the project would be pushing $10 million.

Nokturnl will be paying about $1.2 million in rent a year, turning Yagan Square from a loss into a money-making asset for the government, Business News understands.

The redeveloped precinct will be renamed Stories to represent the five levels of hospitality offerings and the stories behind Yagan Square, Nokturnl co-founder Ross Drennan said.

Yagan Square opened in early 2018 to much fanfare but the $73.5 million project soon struggled to thrive amid anti-social behaviour in the area and tenants coming forward with management issues.

Mr Drennan said all the existing challenges Yagan Square experienced had been talked about in the past few years, but things were about to change.

“I think all you’ve got to do is look around the amount of activity which is happening in the area,” he said.

“The second the doors are open here, the second ECU’s finished across the road, it's just going to be a completely different space.

“Everyone's been pushing towards this being the city link. And we really believe that once what was finished, we will be the heart of the city.”

Nokturnl co-founder Drew Flanagan said the rooftop bar would be a critical change to the space.

“Once complete, [Stories] will be the biggest single venue in the Perth CBD and complete the Perth City Link as we see it,” he said.

Planning Minister John Carey said he was confident the redesigned precinct would be successful this time.

“The simple reality is that this project, which we inherited from the previous government, simply hasn't worked,” he said.

“But it is fair to say that the design that we inherited simply wasn't engaging enough for the public.

“It wasn't opening up to the public. Instead, people just walked straight.

“Nokturnl has the runs on the board. They are very credible hospitality providers, they know they sell their stuff.”

Mr Drennan echoed Mr Carey’s comments, saying he hoped curiosity would bring in the numbers.

“Before … basically people would just walk straight past,” he said.

“Whereas now, it's pretty hard to miss that this is one mammoth hospitality venue and you'll see hundreds of people on different levels as you walk pass.”

Nokturnl is also the operator behind The Beaufort in Mt Lawley and The Old Synagogue in Fremantle.