Gillett purchases Taj for $17m

UPDATED: The massive block of land that once housed the derelict half-built mansion dubbed the "Taj on Swan" in Peppermint Grove has failed to sell at auction, but an offer was accepted on Friday 3 August.

Agent Vivien Yap negotiated an offer of $17 million from Perth-based businessman John Gillett.

Mr Gillett is a former Moran Health Care executive, who sold WA aged care provider Craigcare in 2017 in a deal understood to be worth around $50 million.

Auctioneer Mack Hall told AAP on Sunday (29 July) the owners had been seeking $19 million for the Peppermint Grove property but the highest bid was just $15.6 million.

Three people were bidding at different stages over about half-an-hour on Saturday and Mr Hall said he had never experienced an auction like it.

Negotiations are continuing with two people interested in the property.

The property was being marketed by Western suburbs agent Vivian Yap, as well as Sotheby's International Realty, which was appointed to run a global sales campaign earlier this year. 

It is possible the 6582sqm block may be divided into six lots, subject to Shire approval.

Indian businessman Pankaj Oswal and his wife Radhika had intended to build a $70 million mansion boasting six bedrooms, a temple, observatory with revolving roof, and parking for 17 cars.

But they abandoned the project in 2011, a year after their Burrup Fertilisers empire collapsed and they left Australia as the ANZ Bank called in more than $US500 million in loans.

The graffiti-daubed mansion, which had long attracted anti-social behaviour and was considered an eyesore, was knocked down in 2016.

The Oswals settled a lawsuit with the ANZ over the sale of the Burrup business in 2016, bringing to an end one of the nation's biggest civil cases.

The couple also settled with the Australian Taxation Office and left Australia after a travel ban was lifted.