The Link project delivers rare hotel development site

EPRA is calling for Registrations of Interest in the sale of two strategically located mixed use sites totalling more than 4000sqm in central Perth.

The sites are being delivered to the market as part of The Link project.

The premium sites are located directly east of the Perth Arena construction site on Wellington Street, Perth.

The main site, known as Lot 2, offers developers a rare opportunity to create much-needed hotel or short stay accommodation in the CBD. The site can accommodate a 16-storey landmark building with restaurants, cafés and retail at ground floor with commercial, residential and hotel areas above.

The site measures 1495sqm and could also feature a rooftop restaurant, cinema or public space. Future hotel or short stay developments would also benefit from concerts and special events held at Perth Arena.

The Lot 2 site is designated for mixed use development and is positioned close to major offices, Northbridge and West Perth and has excellent public transport and freeway connections. 

The neighbouring Lot 3A, measuring 2630sqm, is being offered with Lot 2 to deliver further commercial mixed use opportunities to the area including retail and recreation developments to complement future surrounding residential, commercial and hotel activities.

EPRA CEO Tony Morgan said the two prime parcels of land are expected to attract keen interest from developers including major international hotel operators.

“The State Government, through EPRA and Tourism Western Australia, is working with the private sector to meet the needs of hotel developers and operators in developing Perth as a major tourism destination,” Mr Morgan said.

“The development opportunities these sites represent will help add to the exciting revitalisation of this area of the city and introduce a number of attractive services that will benefit the area in the years ahead.”

Chairman of Tourism Western Australia, Kate Lamont, has welcomed the opportunity and urged major hotel developers and operators to register their interest in this rare opportunity to secure large sites in such a premium location.

“There is research showing Perth is in serious need of an additional 300 rooms per year for the next 10 years to cater for current and expected growth in tourist numbers,” she said. “What we need now are quality hotel developers and operators to provide something quite unique that will add to the work of EPRA and Tourism Western Australia in putting Perth on the map.

“We would hope to see keen national and international interest, particularly from across the Asia Pacific region,” Ms Lamont added.

The Link project will reconnect the city centre with Northbridge for the first time in more than 100 years – an important part in the overall plan to revitalise Perth for locals and make it a “must experience” destination for tourists.

The project is expected to create more than 1,650 dwellings housing more than 3,000 residents and 244,000sqm of commercial space for about 13,350 workers.

Demand for short stay accommodation in Perth is the highest in the nation, with over 80% occupancy rates and room rates holding well despite the recent financial crisis. Strong demand growth is expected to resume with the success of Western Australia’s resources industry and upcoming projects like the $50 billion Gorgon and the $11.2 billion Pluto LNG Projects among those expected to boost corporate and tourist accommodation levels.

It is expected that a new hotel on the site will have great synergies with the adjoining Perth Arena by catering for visiting sporting teams and spectators and increase demand from local retailers within the Link development have help stimulate economic activity in the area. The hotel site is perfectly located to service the corporate market during the week and demand from the Perth Arena at weekends.

The purpose-built Perth Arena will be a major addition to Perth’s entertainment resources, hosting regular concerts and sporting events and helping to re-establish a connection between the city's commercial and entertainment hubs.

The two sites will be sold by EPRA via a three stage process:

• Stage 1 – call for Registrations of Interest; 
• Stage 2 – Expression of Interest; and 
• Stage 3 – Request for Detailed Proposals.

The formal expression of interest process will start early next year and will be completed by mid 2010.

As well as new commercial and residential opportunities, almost one third of the entire area will be dedicated to public space such as wide boulevards, public squares, alfresco areas, shade and public art.

Further information can be obtained by contacting EPRA representatives Lisa Montgomery (0421 587 712) or Richard Jeffcote (0432 753 884).