Private equity group Sirona Capital and Luke Saraceni’s Saracen Properties are wrapping up their joint venture Westbridge Property Group, having not completed any projects in the three-year partnership.
The firms had a large portfolio of project proposals under the Westbridge banner, which will be split between the two companies.
However, the only project that came to fruition from the partnership was the 11-storey, 72-room Quest West Perth hotel at 54 Kings Park Road, but that was after the development site was sold by Westbridge to a Singaporean developer.
Quest West Perth opened in January this year.
Mr Saraceni said the developers’ priorities had changed in recent months, necessitating an amicable wrap-up of Westbridge.
“Our objectives started to go into different areas, it just naturally evolved that way, so we decided that the best thing to do was for them in future to do all their own projects and we will do all of our own,” Mr Saraceni told Business News.
“Sirona has a slightly different focus to what we have; they are very broadly based in the stuff that they are doing and we are focused on the property development side of things.
“On that basis, we decided to wrap-up Westbridge and they are going to take some of the projects and we’ll take some of the projects.
“We’ll complete those and come together as we need to for other projects if they suit our joint objectives.”
Sirona Capital managing director Matthew McNeilly also said the developers’ project profiles were taking different directions.
Midway through last month, Sirona unveiled plans to develop a freight hub near Bullsbrook, which has attracted $45 million in backing from global investment giant Goldman Sachs.
“We felt that it was now time to work towards projects that fit thematically with our portfolio,” Mr McNeilly said.
“Both parties are working on a refinancing of Sirona’s investment, which could take several months and we leave the partnership ready to work together again where there are synergies.”
Sirona will continue to advance a proposal for a Quest apartment hotel in Fremantle, as well as Westbridge’s flagship development, the 39-storey, $160 million, 148-apartment Glass House project in South Perth.
Saracen Properties will continue to develop the Habitat Nth and the Rose on Angove apartment projects in North Perth, as well as a range of other commercial and retail opportunities.
Mr Saraceni said Saracen was also re-evaluating plans at the site of its Tenth and Beaufort proposal in Inglewood, after Westbridge was unable to secure enough pre-sales for the project to proceed.
The developers have reportedly been approached by a number of high-profile retail players interested in acquiring the IGA supermarket at the Inglewood site.
