Southern Cross Care WA has sold two lots in Jolimont for about $9 million, after a $55 million project for the site fell through.
Perth property firm Effective Property Solutions finalised the $9.13 million sale of lots 29 and 31 Salvado Road, which were previously earmarked for a six-storey aged care development.
The two lots cover about 4,755 square metres of land and is zoned for residential.
Landgate records show Found Salvado Pty Ltd is the buyer of the site.
Companies owned by Stephen Pelosi and Hootan Golestani hold all the ordinary shares in Found Salvado while about a dozen entities holding the redeemable preference shares, according to Australian Securities and Investments Commission data.
Mr Golestani and Mr Pelosi are founders of West Leederville-based Found Developments.
Southern Cross Care received approval to build a $55 million six-storey aged care facility in Jolimont, in the Parkside Walk precinct, in 2020.
However, the lots were put back on the market in early 2024.
Southern Cross Care WA told Business News that the sale of the Jolimont lots was a planned strategic decision after it engaged Johnstaff Advisory to identify areas of future aged care demand.
The aged care provider said the assessment showed Jolimont already had sufficient aged care supply to meet long-term needs but the area faced a shortage of residential housing.
Southern Cross Care WA has refocused to build a 96-bed residential aged care home in Currambine.
"In contrast, Perth’s northern corridor was identified as having significant future gaps in aged care capacity with a projected shortfall of more than 2,000 residential aged care beds in the Joondalup region alone by 2041," the provider said.
"Based on this evidence, SCCWA chose to release the Jolimont land for residential apartment development, supporting broader community housing needs, and redirect capital investment to areas with the highest forecast demand for aged care."
According to EPS, Lot 31 or 7 Allison Drive was sold for $4.4 million while Lot 29, or 185 Salvado Road, was sold for $4.73 million.
“A six-level vertical aged care facility was originally approved to be built on these key urban infill residential development sites but, in line with design guidelines, they are now slated to become home to apartments,” EPS property investment head Ollie Salimi said.
“This is a great result for thriving Jolimont and in a market struggling with housing supply.”
Southern Cross Care WA chief executive Clare Grieveson said the organisation would continue to invest in developments that ensure high-quality care and services.
"Our strategy is focused on sustainability, growth and responding to demographic needs," she said.
"By aligning capital projects with long‑term demand, SCCWA is strengthening service sustainability and supporting older Western Australians to remain in their communities”.
EPS managing director Erwin Edlinger said the lots hit the market during a period of sustained escalation in residential building costs in 2024.
“Our team methodically engaged with every major apartment developer and aged care provider in WA over the past two years until these sites were acquired by a private WA property syndicate,” he said.
“Over this period, the pricing of new high-density residential product caught up with the rapid rise in construction costs, making projects more viable.
“This is evident in the wider market with a flurry of exciting apartment developments successfully firing up in premium locations across Perth from developers such as Finbar, Blackburne and Edge.”
The Parkside Walk precinct is a joint initiative between DevelopmentWA and the Town of Cambridge.
