EXCLUSIVE: The multinational developer is pulling up stumps on the $1 billion East Perth project after more than a decade at the site.
Lendlease Group is preparing to exit its $1 billion Waterbank project in East Perth, handing it back to the state government after more than a decade of investment.
The multinational developer made the decision this week after months of speculation about its plans for the site.
Lendlease head of WA communities and development Anthony Rowbottam told Business News the developer would hand the site back to the state government, after it completed works to prepare a portion of the site for future development.
“Lendlease will continue to work with DevelopmentWA to deliver works associated with Trinity Avenue to enable the future construction of the precinct,” he said.
“Once this work is completed Lendlease will exit the project and DevelopmentWA will investigate development options for the site.”
The developer won a contract to develop on the six-hectare site in 2011, with plans to create a 1000-apartment, hotel, commercial offices, retail and public spaces on the area.
Rapidly escalating construction costs, supply chain disruptions and labour shortages have plagued the sector since the start of the pandemic.
Lendlease posted a $264 million loss in its recent half-year results.
Mr Rowbottam also spoke about the impacts of supply chain disruptions and global uncertainty for an upcoming construction industry feature for Business News.
“No industry or market is immune from the impacts of supply chain disruptions and global uncertainty,” he said.
“We are constantly monitoring our supply chain and have contingencies in place to respond to changing market conditions.”
He said the group had adjusted its programming to accommodate any potential supply chain issues and engage early procurement of construction supplies and services.
“Demand for construction professionals and skilled labour also continues to be an industry-wide issue,” he added.
Lendlease spoke about the complexities involved with Waterbank in 2018, but at the time was intent on pushing ahead.
Industry insiders have spoken about the complexity of the site’s proximity to the water table, which would bring additional challenges around developing the area.
Mr Rowbottom confirmed final design and civil works would soon begin on Trinity Avenue, expected to be complete by 2023.
He said no pre-sales were committed to the project, but the company had conacted all registered all applicants in its database to advise the development was no longer proceeding.
DevelopmentWA said it was currently undertaking an assessment to help identify future uses for the site.
