Multiplex signs agreement to restore old Swan Brewery

Multiplex Constructions Pty Ltd has signed an agreement with the State Government to restore the Old Swan Brewery in accordance with heritage principles. 

Heritage Minister Jim McGinty said the company would fully restore all existing buildings for commercial and public purposes at no further cost to the Government.

"In a nutshell, this arrangement means no more expenditure of taxpayers' funds, the full restoration of a public asset and work for hundreds of people in the construction industry," he said. 

The 90-page lease agreement was being released to the media in line with the Government's wish to maintain an open and accountable process. 

Mr McGinty said provisions of the agreement with Multiplex subsidiary, Bluegate Nominees, included: 

·         a lease of 65 years; 

·         a rent paid to the Government from year eight of $50,000 and escalating in stages to $140,000 at year 26.  From years 31 to 65 a rent equivalent of ten per cent of the net revenue of the site will be paid; 

·         provision to the Government of a percentage of the net capital gain associated with any assignment or sale of the lease. 

Mr McGinty said the Old Swan Brewery had been identified by the Heritage Council of Western Australia as a significant heritage landmark and placed in the Register of Heritage Places. Restoration of the old buildings would be carried out in line with a heritage agreement drawn up by the Council. 

"This will ensure that there is a high standard of restoration work on the site."  

The buildings would be refurbished and used as offices - with space available for supporting passive retail and public purposes. 

"Provision will also be made for the inclusion of an area to be used for the interpretation of both the Aboriginal and European heritage values of the site. 

"I am pleased that Multiplex has agreed to contribute up to $100,000 for this purpose." 

Mr McGinty said Multiplex had already undertaken a large number of heritage restoration projects throughout Australia including His Majesty's Theatre and Bishops House in Perth, and the Grace Building in Sydney. 

The decision to involve the private sector in the redevelopment of the site had followed expressions of interest by two developers in March of this year. 

"As a result, the Building Management Authority was instructed to approach seven major contractors in Western Australia to determine whether they were prepared to put forward a development proposal for the brewery buildings. 

"This was done in accordance with private sector infrastructure guidelines established earlier this year to promote private investment in public projects. 

"This private tender process is an accepted means of awarding Government tenders.

"The lease agreement has been reached using an independent commercial negotiator and private legal representation."