Squire Patton Boggs has advised the purchaser of the former Perth Girls School site in East Perth. Australian Development Capital (ADC) led a syndicate of local investors (including Multiplex heir Tim Roberts’ Warburton Group) that bested eight other groups to acquire the prime site from the state government.
The 1.1 hectare site has impressive views of the city, the river and the hills and is one of the largest remaining parcels of land available in the outer CBD region. It sold for AU$5 million.
The sale process was complicated by heritage agreement negotiations, designed to protect the historic building. The sale completed on 13 June 2017.
“We are delighted to have assisted ADC in completing this landmark acquisition”, said Squire Patton Boggs partner Carl Black. “The purchaser is considering its development options and we will continue to advise them as they progress the project.”
This transaction is another marker in the continuing resurgence of Perth’s CBD. In the past 12 months alone, Squire Patton Boggs has acted on a number of deals that are regenerating brownfield sites around the CBD alone:
- The first unsolicited bid to reach the second stage of consideration (for the World Trade Centre’s proposed mixed-use development comprising a convention centre, hotel, and retail complex).
- The sale of the Crowne Plaza.
- The rebranding and refurbishment of the incoming Intercontinental Hotel.
- The soon-to-be-constructed Ibis Styles hotel on Adelaide Terrace.
Carl noted: “While the residential property market is still flat, Perth’s hospitality and leisure property sector is still active. This sustained level of investment is an encouraging sign of investor confidence in Western Australia.”
In a report released last week (8 June 2017), the Tourism Council of WA noted that the stock of new hotel rooms in Perth has increased by 24% since 2012, with 13 new hotels opening. By the end of 2018 that number will increase as an additional seven new hotels come online.
The Squire Patton Boggs team advising Australian Development Capital was led by partner Carl Black, along with of counsel Mark Palermo.