St Georges Terrace hotel site sold to Singapore hotel chain
4 NOVEMBER 2015
A Melbourne-based property fund has scrapped plans to develop a luxury apartment building on one of Perth’s most iconic city centre sites, instead choosing to sell the land to a Singapore hotel chain.
Quintessential Equity sold 36 St Georges Terrace, opposite Government House, to GP Hotel Perth WA Pty Ltd for $23.75 million.
The deal was made in October, less than a year after Quintessential Equity purchased the land for $17 million.
The proposed multi-million-dollar development, now scrapped, for St Georges Terrace.
Under plans approved by the City of Perth in October 2014, the 2600 square metre site had been earmarked to become an $88 million, 41-storey residential apartment building with dining and retail outlets and a 240 bay car park.
The hotel would have been built around the historic St Andrew’s Church, one of the few heritage-listed buildings in the city centre.
Quintessential Equity director Shane Quinn said the project had proved too risky for investors and that selling the land was ‘bitter-sweet’.
“While it’s of course disappointing that our vision for the St Georges Terrace site will not come to life, it’s more important that we act in the best interests of our investors and we simply couldn’t de-risk the development to a level that we felt comfortable with,” he said.
“We’re pleased to have successfully sold our option to GP Hotel Perth WA Pty Ltd and have no doubt they will develop an outstanding building.”
It is the second time in as many years that development on the site has been delayed, with plans to build a 22-storey office building also falling through after being approved by the local council in 2013, prior to Quintessential Equity’s aquisition of the land.
GP Hotel Perth WA is expected to build a hotel on the site but did not release any details to its shareholders when it announced the aquisition last month.