27th November 2017.
Perth-based Sirona Capital has struck up a partnership with the local unit of Singapore-listed Chip Eng Seng Corporation, a major player in property and construction, to develop a new luxury apartment tower in South Perth.
The move to back the Perth tower comes despite gloom about the state of east coast apartment markets, with concerns about oversupplied areas of Brisbane and Melbourne.
Notably, earlier this month Chip Eng Seng scrapped 556 sales contracts with unit buyers in its long proposed Tower Melbourne. It blamed protracted litigation that stalled works and has joined with another Singaporean group, Colonial Range, to put their combined $150 million site on the block.
The Perth project, opposite the city’s zoo, holds planning approval for 148 apartments over 38 levels and a small boutique hotel.
Sirona will submit a new application in the second half of next year that meets the City of South Perth’s new planning scheme for mixed-use projects.
Despite sluggish sales in the WA capital, Sirona Capital managing director Matthew McNeilly said South Perth was the city’s best and deepest apartment market.
“It is clear that apartments have emerged as the preferred way of living for residents on the South Perth peninsular,” he said.
“The views to the city, Kings Park and the Swan River are unrivalled and the area enjoys excellent amenities and easy access to the CBD and major transport routes,” he said.
Mr McNeilly said the proposed development of the Lyall Street site fitted with Sirona’s urban high-density investment thematic. He added there was strong bipartisan political support for responsible development and strong signs that Perth’s metropolitan area was almost done with urban sprawl.
“We are taking a 10 to 20-year view that Perth will rapidly evolve like Australia’s other major capital cities with density increasing substantially in nearcity locations and along major transport corridors,” Mr McNeilly said.
Sirona is also moving to lock down an investor to help fund the development of the Kings Square Fremantle project, which will cost about $270m.
The group is open to a joint venture. The commercial aspect will deliver 25,800sqm of office and retail space at a cost of $220m, while a new $50m administration and civic centre will be developed for Fremantle.