Developer ADC explains why Perth Girls School project, and a Maylands complex, are still out for summer

The $800 million old Perth Girls School development and a $20m Maylands project are set for change as a leading developer responds to WA’s evolving construction market. Australian Development Capital’s Adam Zorzi is reconsidering the approved plans for the Perth Girls School project to make it stack up financially amid current construction costs. A $20m apartment complex in Maylands is also set for an overhaul to cope with building challenges. “We are getting very involved in all our projects, sitting down with builders and architects, to find efficiencies,” he said. The Girls School project was revealed in early 2022, with four towers of up to 36 floors high, including a full line supermarket, cafes, commercial offices, an art gallery, a craft brewery and yoga studio space. The skyscrapers were planned to accommodate a total of 742 apartments, including two thirds under the build-to-rent model, 100 social housing units and some speciality disability accommodation. Works were initially slated for the end of 2023 with completion expected at the end of this year or early next year. But to date, there are still no shovels on the ground. Mr Zorzi said the project may remain in its current format, but he would not rule out a redesign. Without any change, it would require a bigger component of social and affordable housing and the government funds that go with it. He said the build-to-rent market was not taking off as much as previously expected, claiming the system did not have the right incentives or taxation structure to help it stack up financially against hefty construction costs. “Build-to-rent has slowed down a bit in WA, apart from what is already in Subiaco,” Mr Zorzi said, in reference to housing by Sentinel. “(BTR) is not canned (from the project). “We are working with the (design) plans we’ve got to try to find a viable solution. “It will probably be a mixture of build-to-rent and social and affordable housing.” He said part of the challenge was the location in East Perth, with multi-storey construction costs particularly challenging outside of the western or waterfront suburbs, where apartments sell for top dollar. However, Mr Zorzi conceded the project was not ADC’s “highest priority” at the moment. ADC is seeking to get an amendment on its plans for a $20m Maylands complex, which previously got approval in 2021, 2022 and 2024. Early works found a higher than expected water table, which now makes basement parking too expensive. ADC has requested a design amendment to instead build ground-level parking, accommodating it with an extra 1.3m at the top of the building. “If you replace a level of apartments with a level of carparking, you don’t just affect costs, you also affect revenue. If you start deleting floors, the project doesn’t stack up.” He said design tweaks — such as replicating the floor plan on every level — would also help find some cost savings for electrical, steel, concrete and plumbing works.