Plans to repurpose a disused power station on prime riverside real estate in East Perth have collapsed following more than two years of negotiations between the WA government and billionaires Kerry Stokes and Andrew Forrest.
In 2020, Andrew Forrest's Minderoo Group was named as a preferred proponent along with Kerry Stokes's Australian Capital Equity to turn the 109-year-old East Perth power station site into a usable precinct that would include residential, shopping and eating-out options.
But earlier this month, the government announced the two moguls' joint venture, known as "Koomba Kalark" had pulled out of the deal, despite the state government committing to spending $121 million to prepare the site for development.
The government has now announced that after two and a half years of negotiations the billionaires' exclusive rights to the site expired last night and would not be renewed after "insufficient progress" was made.
A spokesman for Mr Forrest's property investment arm Fiveight said in a statement the firm remained committed to their vision.
“We welcome the state government’s commitment to redeveloping the site and look forward to engaging with DevelopmentWA to progress our proposal, which would keep the site in Australian hands,” the statement said.
The dissolution of the joint venture comes amid cooling relations between the two industry titans.
Mr Stokes is a majority shareholder in Seven Group, which owns mining equipment company WesTrac.
It's a market FMG announced it would enter last June, partnering with multi-national manufacturer Liebherr to supply "green" mining haul trucks.
Seven Group also owns 40 per cent of Seven West Media, which owns The West Australian, the state's only daily newspaper.
In a leaked video message sent to staff last month, Mr Forrest reportedly said The West Australian's coverage of Fortescue was "driven by the narrow, self-seeking, commercial interest" of Mr Stokes's Seven Group.
The newspaper's editor, Anthony de Ceglie, defended his editorial independence in a front-page editorial.
"It must be noted it came after our stories holding FMG to account when WorkSafe was forced to take the serious step of laying charges over one of WA's biggest companies refusing to release documents relating to alleged sexual harassment at its sites," De Ceglie said in his editorial.
Government all in on future of 'eyesore' site
Lands Minister John Carey said in a statement the government remained committed to redeveloping the site.
"The East Perth Power Station has been an eyesore and a derelict site for more than 40 years," Mr Carey said in a statement.
“Over the past two years we've invested in major de-constraining works to prepare the site for development, including removal of gas infrastructure, contaminated subterranean coal handling structures and removal of asbestos from the power station itself.
"Through this investment we’re now presented with an exciting opportunity to reconsider, with the market, how we can deliver the best redevelopment outcome for East Perth Power Station."
The state had valued the site at just $1, due to the issues associated with it.
