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South Fremantle power station headache continues after Stokes abandons sale
The City of Cockburn has urged the state government to involve other agencies and departments to help solve the South Fremantle power station problem.
In July, WAtoday revealed billionaire Kerry Stokes’s investment vehicle Australian Capital Equity was the mystery party which signed a conditional sale agreement with the site’s owner Synergy. However, on Tuesday ACE pulled out of the sale because redevelopment would prove too costly.
The decision means the state government is back to square one with the power station, which is heritage listed but continues to deteriorate.
Synergy’s ownership of the site complicates its redevelopment because it operates as a commercial enterprise, which Energy Minister Bill Johnston has previously said meant property deals were done at arm’s length from the government.
This differs from the East Perth Power Station site, where remediation works are being led by the government’s Development WA in preparation for purchase and redevelopment by ACE and Andrew Forrest’s Tattarang. About $112 million has been budgeted to get that project off the ground.
City of Cockburn mayor Logan Howlett said the city was disappointed the South Fremantle power station sale didn’t proceed, but was optimistic it would still become an iconic site on Perth’s coastline if the government included other agencies.
“This site represents a fantastic opportunity for the state government to make this redevelopment a project of significance and a coordinated approach by state government agencies would help achieve this,” he said.
“We appeal for the state government to acknowledge the state significance of the heritage-listed South Fremantle Power Station for the benefit of all West Australians.
“The city strongly believes the [site] will play a distinctive role as a unique coastal landmark incorporating a vibrant mixed use development to enhance the Cockburn coast, provide a national tourism destination and a regional employment hub.”
Energy Minister Bill Johnston said Synergy was considering its options to best divest the site from its books.
“The state government remains committed to seeing the site developed for the benefit of the people of Western Australia and will continue to investigate options for its future,” he said.
A redevelopment was first earmarked in 2014 as part of an urban renewal plan for the coastline stretching from South Beach to Port Coogee, but every attempt to do something with the site has failed.
The iconic building is a rare example of a “cathedral-style” power station build that was common in Australia and the UK in the 1930s to 1950s.
However, it is riddled with “concrete cancer” – a rusting of metal in concrete that damages its structural integrity – and will require significant and costly remediation work.
A Synergy spokesman said ACE was provided with significant time for a due diligence process, during which it ultimately found the project was not worth the cost.
“The former power station is one of the most challenging and complex development sites in Western Australia’s history and ACE’s findings were that it would need significant expenditure for it to be suitable for any type of development and future public use,” he said.
“Synergy will now take some time to consider future options for the site and remains committed to seeing the site developed for the benefit of the people of Western Australia.”