This article is from the Australian Property Journal archive
THE Anglican Church has canned the $80.85 million redevelopment of Cathedral Square in the Perth CBD, leaving preferred developers Mirvac and Cbus Property in the dark.
Plans to redevelop the site have been encouraged by the Perth City Council for over a decade.
In June 2007, the previous Western Australia Government had visions to develop a hotel and 15,000 sqm office complex.
A year later, plans were announced to redevelop part of the Perth Diocesan Trustees’ site which covers 8,500 sqm and includes the Old Treasury buildings, St George’s Cathedral, the Playhouse Theatre and the Law Chambers building.
And in February last year, the WA Government named Mirvac and Cbus Property as preferred developers for the Law Chambers Building on Hay St.
But late month the church reportedly told the joint venture partners and the Perth City Council that the project will not go ahead.
The previous Alan Carpenter Government had proposed to purchase the site from the church but that did not eventuate.
WAToday reported that Mirvac wanted the Perth City Council to take a 99-year lease of the Law Chambers Building and the existing Cathedral Square on St George’s Terrace.
Under Mirvac’s masterplan, the building would be demolished paving the way for a 360-bay car park as well as a 12-level 6,850 sqm office building which would cost around $56 million.
But a separate independent estimate commissioned by the council found the project would cost around $80.85 million.
Diocese of Perth secretary Brian Dixon reportedly said the sums for the project did not stack up and no-one was prepared to step up with the money.
Australian Property Journal
