- One Richardson and Richardson Centre projects have been resuscitated, after financing issues and low sales stalled construction
- Work on the residential and commercial towers has recommenced with new financier Centuria Bass on board
- Prime example of developers and lenders collaborating to overcome challenging environment, says DPF Director
Perth developer Devwest has announced construction has recommenced on the company’s long-awaited South Perth residential and commercial development, One Richardson and the Richardson Centre.
The Devwest project, in partnership with builders EMCO and architects MJA Studio, will offer opportunities for both homebuyers and investors to secure an apartment or commercial space in an inner-city location.
Plans for the office building and residential tower were first granted approval in 2013, yet have failed to come to fruition in the several years since.
Brighter days follow rocky beginning
The mixed-use development has had its fair share of troubles since its launch in 2013.
Unfavourable market conditions and a lack of sales forced work to be halted on the project after it began only six months earlier in 2014.
The developer was then entangled in a long-running dispute with funding partner and Singaporean investment holder Sincap Group.
The Sincap Group’s dispute pertained to a loan of $4.7 million dollars granted in 2015, which Devwest failed to repay once construction was stalled on the project.
The dispute was subsequently settled between the parties in 2018, after Devwest entered several payment plans to reimburse Sincap Group.
Now it appears Devwest’s South Perth project has entered a new era, with the developer establishing a new funding partner and hoping to put the past behind them.
The Perth-based development group worked closely with Development Finance Partners (DFP), securing themselves funding from Centuria Bass to complete One Richardson and the Richardson Centre.
Residential and commercial offerings
With funding now reestablished, construction work on the mixed-use development has been given the green light and recommenced recently.
The residential tower, named One Richardson, offers prospective residents a central Richardson Street address overlooking Richardson Park, Royal Perth Golf Course and the Swan River.
The apartment tower will provide buyers the choice of one- or two-bedroom plans, or a unique double storey apartment design with two- or four-bedroom options.
The Richardson Centre, a nine-storey commercial office tower will be located a stone’s throw from the residential tower, positioned on the corner of Richardson Street and Melville Parade.
The strata titled tower will offer investors and business owners the chance to purchase a workspace within the dedicated office tower with its own exclusive lobby, with some spaces overlooking the Swan River and Kings Park.
Devwest Executive Director Chad Ferguson described the Richardson Centre as offering businesses an amazing opportunity to own their own space.
“The ability to own office space in a landmark building with panoramic water views, in a blue-ribbon CBD fringe suburb, is very rare. Office space of this quality is usually only available to lease.”
Chad Ferguson, Devwest
The Richardson Centre will also comprise a 145 sqm cafe located on the ground floor, and end-of-trip facilities to encourage visitors to make use of the location’s established cycle routes.
Show of support for revitalised project
Despite a rocky and sluggish start to the development’s life, it appears the wheels are turning again to bring One Richardson and the Richardson Centre to fruition, nearly a decade after their launch.
DPF Director Matthew Royal described the resuscitation of the Richardson Street development as a prime example of developers working closely with lenders to bring projects to life amid a challenging climate.
“Rapidly escalating construction costs and labour shortages are putting pressure on developers, however working with the right financiers can be the difference between projects proceeding and not proceeding.”
Matthew Royal, DPF Director
Centuria Bass CEO Nicholas Goh expressed the company’s pleasure in providing finance to the project as it regains momentum.
“It has taken strong leadership to bring this project to life and we are delighted to be supporting the teams at Devwest and EMCO in developing the iconic One Richardson project in South Perth,” concluded Mr Goh.