Silverleaf Investments has withdrawn its $65 million plan to build apartments at Fremantle's Woolstores site after assessing the project's financial feasibility.
Silverleaf Investments has withdrawn its $65 million plan to build apartments at Fremantle's Woolstores site after assessing the project's financial feasibility.
Fremantle developer Silverleaf dropped its Woolstores proposal, which includes build-to-rent and aged care components, from the state government's Significant Development Unit Assessment Pathway list last week.
It comes more than a year after the Western Australian Planning Commission approved the first stage of the overall redevelopment of the site at the corner of Cantonment Street and Elder Place.
Silverleaf director Gerard O'Brien told Business News the application was withdrawn after being in the SDAU pathway for about three years.
"With interest rates jumping and costs of construction going to $2,500 per square metre ... it will cost us about $10,000 per square metre [to build]," Mr O'Brien said.
"I just don't know how build to rent is going to stack up on construction costs.
"It really is a dilemma and I can't see it changing in the next two, three, four years."
Silverleaf Investments received approval in April 2020 to demolish the Woolstores shopping centre building for a six-storey development, but majority of the site remained vacant after demolition.
A two-storey public car park has occupied the site since the 2020 approval.
Silverleaf submitted a new approval to build the project in two stages, with the first comprising a Coles supermarket covering 3,594 square metres, a liquor store, retail tenancies, childcare premises and offices on the first and second floor.
Construction of the first stage has progressed.
Mr O'Brien said the decision to withdraw was a difficult one, and was prompted by a call from the SDAU asking to progress the $65 million application.
"We didn't see us fixing it. We spent a lot of money putting our scheme out there; millions of dollars were spent," he said.
"It's disappointing but that is the reality of the market.
"We'll leave it [the site] as car parking and we'll see how it goes in the years to come."
Mr O'Brien still have hopes for the area, telling Business News Fremantle desperately needed more people and housing in its CBD.
Silverleaf's move comes after Fini Group's Margaret River hotel plan has been put on hold, also because of doubts on the financial feasibility of the project.
Last month, Fini Group said it was reassessing the viability of the proposed $8.5 million hotel in Margaret River, citing commercial challenges in the local tourism sector.
The developer opted to defer a State Administrative Tribunal hearing over conditions of the approved project, telling stakeholders it would assess the commerciality of the project.
The proposed 37-unit, three-storey development was set to include hotel rooms and villas, a bar, function space and restaurant.
