A new beachside tourism precinct in Perth is set to become reality, after Chinese developer 3 Oceans Property received planning approval for its $450 million, two-tower hotel and apartments project in newly-redeveloped Scarborough.
Demolition and site preparation work will start immediately, while main construction work is expected to kick off in January, once the developer has its building permits in place.
Construction giant Multiplex is best placed among tier-one builders to carry out the works, having been in discussions with 3 Oceans for several months.
3 Oceans managing director Dyno Zhang welcomed the Metropolitan Redevelopment Authority’s decision to approve the project, following months of mediation and collaboration after 3 Oceans’ first design was rejected late last year.
Mr Zhang said the project, designed by local architecture firm Hillam Architects, would become a strategically important asset for the state, creating 2,200 jobs during construction and 700 full-time jobs once complete.
“It will promote tourism, provide a new place for local people to enjoy, improve the accommodation offering, and create exciting new retail and food opportunities,” Mr Zhang said.
Urban Development Institute of Australia WA chief executive Allison Hailes also welcomed the nod, saying the project would be a catalyst for further investment and improvement at Scarborough, where the state government and the City of Stirling recently spent $100 million on beachfront enhancements.
“The high-quality design and visionary nature of the proposal will hopefully influence further projects,” Ms Hailes said.
“The Iconic Scarborough development will be a fantastic example of what can be achieved along our coast and will assist in furthering Perth’s reputation as a must-visit destination on a global scale.”
3 Oceans worked closely with the MRA following its first planning rejection, which was made on the basis that the project, with a 43-storey tower and a 35-level building alongside, represented overdevelopment of the site, located on the corner of Scarborough’s West Coast Highway and Scarborough Beach Road.
In response, 3 Oceans reduced the size of the project’s podium level and slimmed down its towers, reducing the number of apartments from 345 to 314, and hotel rooms from 159 to 119.
Planning guidelines for the site prescribe an 18-limit height limit for the site, however, the MRA was able to use its planning discretion to approve the project on the basis that the proposal would provide significant public benefit.
Amenities included in the development include an art gallery and viewing platform on the building’s 43rd level, a central retail and hospitality plaza, a market hall, a WA Coastal Experience Centre and convention facilities.
The approved proposal comprises buildings of 43 and 33 levels, which were considered to exhibit “design excellence” by MRA planning officials.
3 Oceans is planning to start construction ahead of any apartment marketing, a strategy not seen often in Western Australia due to financiers’ strict pre-sales requirements.
Mr Zhang has previously told Australia China Business Review that 3 Oceans would launch a marketing campaign about halfway through the project’s two and half year build.
The only other developer currently active in Perth willing to begin building a project without a minimum pre-sales level is Singapore’s Fragrance Group.
Earlier this year, Fragrance Group’s construction contractor Probuild began building the NV Apartments on Murray Street, which comprises two towers, one a 28-level, 488-room hotel and a 33-level, 401-dwelling apartment building.