Fate of controversial redevelopment hangs in balance as owner reconsiders future
LOS ANGELES: The fate of a hotel and boomer apartment complex now hangs in the balance.
The fate of the $800 million OBH redevelopment in Cottesloe hangs in the balance, with owner Stan Quinlivan conceding there was a chance he may not push ahead with the controversial project.
Mr Quinlivan said he was re-evaluating the whole project — which he had once revealed as his “family legacy development” — because he was uncertain about achieving the projected returns initially forecast by project manager Edge Visionary Living.
He said development costs, estimated at $220 million when the project was approved in mid-2023, had increased substantially, and the shortage of builders would further remove competition, claiming it was likely that only one would bid for the work.
He said while his existing beachfront hotel was in need of a redevelopment, the project may have to change from the current approved design.
The news may come as a relief to local NIMBYs, who complained about the three-tower complex proposal, featuring up to 12 storeys in height, 185 apartments, a 120-room hotel, 600 car bays, a day spa, cafés and restaurants.
“I’m the decision-maker and I’m doing nothing at the moment,” Mr Quinlivan said. “I’ll meet with project managers at the end of August.
“No, I’m not saying it’s going ahead, or that it’s stalling for six months or 12 months. I’m not saying anything (about plans for OBH) because I have not made up my mind about what to do.
“I’m concerned about whether the figures being presented to us by (project manager) Edge are achievable. That’s the bottom line.”
When asked about rumours that a $50m blow-out in development costs had made it untenable, he said: “I can’t even confirm that. The only budget I have ever approved was the original plan for 200 units.”
The 200-unit model was the one presented to the State Design Review Panel in early 2023.
But the panel called on Hillam Architects to narrow the size of the towers and reduce apartment numbers to 185.
Mr Quinlivan said the reduction in apartment numbers had added to concerns about the financial return on the project. He was also concerned about occupancy at the 120-room hotel facility, given the high nightly cost.
He conceded that if the project did proceed in its current form, the plans may require an official extension from planning authorities, with approval due to lapse on June 26, 2026.
While it was possible to commence demolition and groundworks in that time, it would take nine months alone to pull together technical drawings before the project could even reach the tender process.
“This is a huge development, the best part of $800m in sales. It’s not a backdoor job and it’s a difficult one to do,” Mr Quinlivan said. “I’ve got to make my mind up over the next month.”
Edge’s Gavin Hawkins could not be contacted.