Finbar and Ventrade Australia will create a microbrewery and two apartment towers in Perth after acquiring a parcel of land from the state government for $16 million.
A $200 million development is planned for the site, with 340 apartments and 1,400sq m of commercial space at Lot 101 Hay Street, East Perth.
Currently on the 5,335sq m site is a red-brick, materials science building on the corner of Hay Street and Plain Street which has heritage significance and will be converted into the microbrewery as part of the development.
Developers in Perth are moving ahead in the residential sector, bucking trends set in Melbourne and Sydney this year.
Finbar managing director Darren Pateman said the group is experiencing an improving sales environment as a result of Western Australians returning to the state from interstate and overseas, and the increased economic activity in general.
“The City of Perth precinct has been Finbar’s most important activity zone over the past 25 years, with 3,516 apartments developed there to date, ” Pateman said.
“[This is] largely due to its plot ratio and generous height limits, which allows us to exercise our competitive advantages.”
Pateman said Finbar had tried to make the Hay Street deal work many times in the past eight years.
“This is an important acquisition that reflects Finbar’s historic and significant presence in the East Perth inner-city precinct.
“Its timing aligns well with the recent government announcements regarding amenity upgrades to the surrounding area.”
These upgrades include $60 million towards funding a new public pool and other improvements to the nearby Western Australian Cricket Association, or WACA, ground and $50 million for the new Heirisson Island cycling and pedestrian bridge, improving local connections around the Swan River.
The contracted purchase from DevelopmentWA is expected to settle in December, with plans to be lodged within six months and construction expected to start in late 2022.