Kerry Stokes and Andrew Forrest win extension on $1 Perth property development deal
The closely scrutinised deal could allow Kerry Stokes and Andrew Forrest to land a prime site valued at just $1.
A closely scrutinised agreement that could allow Perth billionaires Kerry Stokes and Andrew Forrest to pick up a prime Perth riverfront site valued by the state at just $1 has been quietly extended.
Mr Stokes’ Australian Capital Equity and Mr Forrest’s Tattarang have had their exclusive working period to negotiate their planned redevelopment of the East Perth Power Station site on the banks of the Swan River extended by another three months until the end of September.
The agreement had originally been due to expire on Wednesday.
The government has agreed to spend $65m remediating the site, which would pave the way for ACE and Tattarang’s plan to convert the power station into a mixed-use residential and commercial space and develop hundreds of apartments on the surrounding site.
The historic building was constructed in 1914 and decommissioned in 1981. It has since fallen into disrepair, but the site – which has the city to its west and the Optus Stadium precinct across the river to its east – has long been eyed by developers.
Under the original agreement, announced by the McGowan government early in the pandemic, ACE and Tattarang would spend $218m over four years at the site, creating 1900 construction jobs and a further 1300 jobs during its operation.
The government last week announced plans to sell the similarly derelict South Fremantle Power Station site by the ocean in North Coogee.
The East Perth and South Fremantle buildings are two of only four examples of so-called cathedral-style power stations still standing anywhere in the world.
The others are both in London: the Tate building, now home to one of the world’s most famous art galleries, and the recently restored Battersea Power Station.
The East Perth Power Station agreement has fed perceptions of close ties between Mr Stokes – the major shareholder of Seven West Media – and the WA government.
But the scale of the remediation work required at the 8.5 hectare site has complicated the execution of the agreement.
An electrical switchyard at the site – through which all power into the Perth CBD is delivered – and a gas pressure reduction station both need to be relocated before the redevelopment can begin, while transmission lines need to be moved underground.
A government spokesman confirmed the parties were still in discussions over the project.
“Negotiations are continuing with all parties to address the complexities of the site and subsequent redevelopment, including the adaptive re-use of the power station building and activation of the surrounding public domain,” he said.
The remediation works required were cited by the government as the reason it valued the site at just $1.
Some $20m of public funds has been allocated to the project to “improve connectivity”, including building a pedestrian bridge.
More Coverage
Albanese government to take no action on ABC’s Pell breach
Despite the public statement of intent from the ABC/The Monthly to publish the Pell material again, the Department of Social Services has decided no further action will be taken.
‘Fine man’ Albanese still has work to do on Trump’s tariffs
The political optics demand the PM secures a win on tariffs, not least of all to buttress attacks that he is a weak leader. The early signs are encouraging that he may well get there.