One of Perth’s newest office precincts is in line to get a fresh face, with Charter Hall seeking to build a second tower at Raine Square, part of a $150 million redevelopment plan.
One of Perth’s newest office precincts is in line to get a fresh face, with Charter Hall seeking to build a second tower at Raine Square, part of a $150 million redevelopment plan.
The institutional investment giant last week lodged a development application at Raine Square, which was only completed in 2012, designed to increase the value of the asset to around $700 million.
Features of the revamp include a new restaurant and bar precinct, an enhanced retail offering, a multi-screen cinema complex and a 15-storey tower, designed to attract a hotel operator as well as allow for conference facilities.
Local architects Cox Howlett + Bailey Woodland designed the redevelopment in collaboration with Leederville-based firm Taylor Robinson.
Construction is expected to start in early 2017, subject to relevant planning approvals.
Charter Hall paid $458 million for Raine Square in June 2013, as the lead partner in a consortium that also included its Core Plus Office Fund, a domestic super fund and a global institutional investment group.
The building came to market after its developer, Westgem Investments, defaulted on its loan commitments with Bankwest and Bank of Scotland, resulting in the project being placed into receivership in January 2011.
Charter Hall head of office development Andrew Borger said the fact that the development was completed under receivership meant that the highest and best use was not achieved for the site.
“Our vision is to transform Raine Square into Perth’s most significant mixed-use precinct, which will include the existing Bankwest Place, retail, entertainment and a hotel that connects seamlessly with the Perth City Link to make it a seven day or night destination,” Mr Borger told Business News.
“Along with the existing office tower, we want to revitalise the Perth CBD by activating the site with the introduction of global retail brands, a hotel, a cinema and high-quality food and beverage operators.”
Mr Borger said Charter Hall was undaunted by a wave of significant hotel developments in Perth, which includes new properties from international groups Ritz-Carlton, Hilton and Westin, among others.
He said he expected Raine Square’s central location, and its proximity to the Perth City Link, to be a key selling point for potential operators.
“We have commenced discussions with a number of operators who are very keen to secure this site to develop a hotel in what will be Perth’s most accessible office, retail, and entertainment precinct,” Mr Borger said.
