The developer of The Pearl is in liquidation, deposits are being returned to buyers and the site is on the market.
A proposed $190 million apartment project in South Perth has been abandoned, with the developers in liquidation and the site placed on the market.
The Pearl, comprising 137 apartments across 27 storeys at 1-3 Lyall Street and 56 Melville Parade, was approved in 2021.
The sites, which cover a combined 2,976 square metres, are being sold via a mortgagee in possession sale listed yesterday.
At least 20 people bought into the luxury apartment project, which was spearheaded by Dragon Century Pty Ltd.
Dragon Century, controlled by Shijian Liu and Liurong Cai, is also behind several dim sum restaurants including the former Dragon Palace in Northbridge.
Last month the Federal Court ordered Dragon Century to be wound up, following proceedings between the Australian Tax Office and the entity.
Sydney-based Helm Advisory was appointed as a controller of Dragon Century by financier Livingstone Investment Holdings in December, and is believed to be handling the sale of the site.
Business News understands that buyers have recently had their deposits refunded after an anxious wait and a protracted period of having little communication with the developer.
One buyer paid $70,000 to secure a dwelling in the complex at least two years ago and has just received the money back.
It is understood that the developer tried to sell the site as a going concern, that is, with contracts in place, and therefore held off returning deposits to buyers.
A legal requirement for the developer to acquire the entire site by a certain date triggered a mechanism for the buyers to have their deposits returned.
Under the Sale of Land Amendment Act 2016, if a developer does not become the registered owner of the land covered by a development by a specified deadline, sales contracts for that site are voided.
The proposed apartment project. Image: Supplied/Ray White Commercial
RP Data shows that Dragon Century purchased 3 Lyall Street for $8 million in 2015, but 56 Melville Parade is registered to Ausunshine Holdings Pty Ltd.
Australian Securities and Investments Commission records show that Ausunshine and Dragon Century have the same directors and at least one shareholder, and the two entities are registered at the same address.
However, it is understood that the Melville parade property should have been registered under the latter entity.
The buyer’s deposits were held in a trust by Lavan Legal, who is handling their return.
City of South Perth documents show that as of June last year, Dragon Century owed $128,381 for three years of unpaid rates for 3 Lyall Street.
The council took possession of the Lyall Street property in June 2024, when a notice was provided to Ausunshine Holdings.
A City of South Perth spokesperson today said the city had issued a property seizure and sale order for the property.
"The City's legal representative is currently working with the mortagee to recover the charges owing," the spokesperson said.
It is unclear why the development did not proceed, but industry experts say sharp increases in construction costs and a lack of available builders were factors.
RWC WA (formerly Ray White Commercial) is brokering the sale of the sites under via a mortgagee in possession process.
The sites are described as “large-scale, high-density infill” sites less than 2.5 kilometres from Perth’s CBD, offering holding income of $254,800 per annum from units at 1-3 Lyall Street and $66,126 p/a from a tenant at the Melville Parade property.
An expressions of interest campaign for the site expires on April 30.
RWC WA director Michael Milne said the landholding should appeal to developers.
“It has a current active development application and the development takes advantage of 360 degree views across to Perth, Kings Park and Fremantle,” he said.
Dragon Century’s owners were contacted for comment.
