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News: 21-June-07 by Jenelle Carter
Ascot Capital has managed to garner plenty of publicity since it bought Jandakot Airport Holdings in February 2006.
The property development group has a number of ambitious projects on its books, including the $1 billion redevelopment of 160 hectares of non-aviation land at Jandakot Airport.
And in April, Ascot announced its partnership with the Western Australian Cricket Association to transform the iconic East Perth ground into a 30,000-seat stadium and office, residential, and entertainment hub.
At the same time, Ascot is planning to start work this year on a $51 million strata resort at Greenough called S’Cape on a 9ha caravan park site, in addition to $40 million worth of infrastructure upgrades at Jandakot, and residential subdivisions in Donnybrook.
Ascot directors David Van der Walt and Greg King told WA Business News they have been involved in major commercial, industrial and retail projects in South Africa, the UK, and Australia during the past 25 years.
Leaving Mr King to run their South African operations, Mr Van der Walt emigrated to Perth in 2001 and quickly partnered with construction and development group Pindan in the $20 million Beaufort Central project on Stirling Street.
“Everyone thought we were crazy when we first bought it,” Mr Van der Walt said.
“The market was really iffy then, but when you find a block that is walking distance to the city and cappuccino strip, you can’t pass it up.”
The partners built 137 apartments and 11 commercial tenancies there and have since created 180 house and land packages in Hillarys and Viveash.
However, their biggest coup was acquiring Jandakot Airport Holdings in 2006, which delivered a 99-year Commonwealth lease over 622ha of prime property and a mandate to create a sustainable business community.
When completed in the next 10 years, the proposed Jandakot City development is expected to help boost the airport’s workforce from 900 to 6,000 people.
Located to the north of the airport, the 148ha business precinct will comprise 500,000 square metres of leasable commercial office, bulky goods retail and showroom, and light industrial and distribution warehouse space, all to be developed by Ascot.
The first project is a 12,000sq m warehouse for Stainless Pipes and Fittings Australia, which is expected to be complete in June next year.
This to be followed by two 4,000sq m A-grade office buildings, the first of eight buildings to be constructed in a 40,000sq m office park over the next decade.
To help accommodate the growing community of trainee pilots and airport visitors, Ascot is also designing 160 short-stay residential units next to the aviation precinct, to be developed in four-stages.
On the aviation side, Ascot has spent $10 million to date on capital works and will outlay a further $30 million in the next six months on link roads from the airport out to Randford Road and Berrigan Drive, new hangars and more sewer, water and power connections.
Development of a fourth runway is expected to be approved by the end of the year and construction completed by the end of 2009.
Ascot’s significant investment appears to be at odds with its proposal to relocate the airport to a 1,200ha site in Keysbrook, which when revealed last year raised concern among airport tenants, who believed it contravened a government-approved master plan.
Mr Van der Walt told WA Business News that, far from being a pure property play, Ascot believes it had a responsibility to highlight safety issues it says the airport faces to the state and federal governments.
It will put the case for the relocation to both parties later this year.
While Jandakot is by far its biggest commitment, Ascot is involved in another waiting game at the WACA.
Discussions are continuing with the state government, East Perth Redevelopment Authority and Trinity College over the WACA redevelopment plan, which includes a proposal for two 17-storey residential towers.
Mr Van der Walt said the group was confident the proposal would be accepted by WACA members shortly, and could be progressed to the planning approval stage later this year.
With more than $1.38 billion in development projects either under way or in the pipeline, the question remains how Ascot is funding its big push into WA.
“We have one individual who is our financial backer and most projects are funded by a combination of debt and equity, but we will work off our own balance sheet for the WACA,” Mr Van der Walt said.
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