GP Hotel Perth WA Pty Ltd has acquired a site in St Georges Terrace in the Perth CBD for $23.75 million with the aim to develop it into a hotel.
The property at 36 St Georges Terrace was snapped up after unlisted property fund manager Quintessential Equity decided to sell its option to develop the iconic site.
Purchased by Quintessential Equity in November 2014 for $17 million, the company had identified the iconic site as a potential luxury residential apartment building of 280 units over 35 levels, complete with gymnasium and indoor pool on the top floor, overlooking Perth’s Swan River, as part of a series of new landmark developments in the area, including Cathedral Square and Elizabeth Quay.
After careful consideration and full support from the vendor, the Uniting Church, Quintessential Equity could not comfortably de-risk the opportunity for its investors and as such, decided to sell the option.
Quintessential Equity Director Shane Quinn said the sale was bitter sweet but ultimately in the best interest of their investors.
“While it’s of course disappointing that our vision for the St Georges Terrace site will not come to life, it’s more important that we act in the best interests of our investors and we simply couldn’t de-risk the development to a level that we felt comfortable with,” Mr Quinn said.
“We’re pleased to have successfully sold our option to GP Hotel Perth WA Pty Ltd and have no doubt they will develop an outstanding building. This one wasn’t meant to be for us, but it certainly represents a significant opportunity and we wish the team every success.”
The news comes as Quintessential Equity announces the appointment of former Mirvac Director of Development, Guy French-Wright, in the capacity of Development Director, to take effect from early 2016.