Woolworths buys old Princess Margaret Hospital parking lots in Subi

Woolworths has bought what was once the Princess Margaret Hospital's carpark – a stone's throw from the government's Subi East redevelopment site – in what it's hoped is the start of a landslide of commercial activity for the struggling area.

Lands Minister Ben Wyatt on Tuesday announced the lots had been sold to Fabcot, a subsidiary of Woolworths, following a competitive process.

Subiaco's quiet these days, but it's hoped new development such as Woolworths' in West Perth will turn its fortunes around. Credit: Emma Young

He said in a statement that subject to approvals, the site could include a shopping centre and apartments and it was hoped the activation would encourage further urban infill development.

He said development of the underused site, “one of Perth’s finest central locations”, would complement and enhance the appeal of the entire precinct.

Artist's impression of new markets planned for the old markets site. Credit: Blackburne Property Group.

“The successful proponent has put forward a proposal that aligns with our broader vision to
reinvigorate the area and complement the neighbouring Subi East development," he said.

“I am delighted to see this site, which is surplus to government’s requirements, being repurposed, following an open and competitive process."

Subiaco, once a pumping village near the city centre, has seen rapid change in recent years.

The Subiaco Pavilion Markets site on the corner of Rokeby and Roberts roads has sat derelict for more than a decade after a development proposal fell through in 2015.

AFL matches have also shifted from Subiaco Oval to the newly constructed Optus Stadium.

Subiaco has many retail vacancies. Credit: Emma Young

The closure of Princess Margaret Hospital with the opening of the new Perth Children's Hospital also meant fewer footsteps pounding the suburb's pavements.

Add this to a challenging time for traditional retail strips, with consumers embracing shopping malls and online shopping over retail strips, and Subi's major artery Rokeby Road has seen high vacancies and the closure of prominent businesses including what was once a mainstay; the Witch's Cauldron.

But things have slowly been shifting.

In February, Blackburne's proposal for a 24-storey development at the old markets site was approved and construction is expected to start on the site towards the end of 2019, a $120 million development precinct with restaurants, shops, tavern, office and apartments over three buildings ranging from six to 24 storeys.

The new $71 million high school at Kitchener Park, which will be called Bob Hawke College, will open in 2020 and have a capacity for up to 2000 students, who will use Subiaco Oval as playing fields.

The state government has also released "concept" plans for the high-profile 35.6-hectare Subi East redevelopment area, including the old PMH site, Subiaco Oval and surrounds, the school and West Leederville train station, with plans for high-density and medium-density housing surrounding these key sites.