DevelopmentWA has ended negotiations with Andrew Forrest’s private company on the redevelopment of East Perth Power Station.
DevelopmentWA has ended negotiations with Andrew Forrest’s private company on the redevelopment of East Perth Power Station.
It’s less than a month since Business News revealed the dispute between Mr Forrest and Seven Group chair Kerry Stokes, the two proponents who had been jointly picked to develop the site in 2020.
That was followed by the revelation that Mr Forrest’s Fiveight would seek to move forward alone on a proposal for the 9 hectare site.
Mr Forrest's company held the exclusive rights to develop the project after Mr Stokes' Australian Capital Equity walked away from the deal, and needed to secure a final agreement with DevelopmentWA by Friday.
But today, the state government’s land developer has said insufficient progress had been made between the parties following two and a half years of negotiations, and it has ended the exclusive negotiating period.
After more than $100 million of works to ready the site for private redevelopment, it means the government will likely need to reopen bidding for what it had called Perth’s eastern gateway.
“In February 2023, DevelopmentWA received formal notice of the dissolution of the Koomba Kalark Joint Venture,” a statement from DevelopmentWA said, referring to the joint venture between Mr Forrest’s Fiveight and Mr Stokes’ Australian Capital Equity.
“The DevelopmentWA Board has resolved not to extend the exclusive working period deed, which expired on 3 March 2023.
“After two and half years of negotiations, the board determined insufficient progress had been made on a range of matters to justify a further extension.”
The statement said works at the site would continue, and the board would start a strategic planning process in preparation for a masterplan.
A spokesperson for Fiveight said the company was still intending to redevelop the site.
“Fiveight remains committed to our vision for revitalising the long-neglected East Perth Power Station and creating a landmark public asset for the people of Perth," the spokesperson said.
“We welcome the state government’s commitment to re-developing the site and look forward to engaging with DevelopmentWA to progress our proposal, which would keep the site in Australian hands.”
