Property and commercial projects

Open date
05 May 2025
Closing date
15 January 2025

Last update date: 02 December 2025

The City of Stirling has a large portfolio of land and real property assets including a leasing portfolio and the generated income is used to deliver key services.

The City's Land Asset Action Plan 2023-2028 is an informing strategy to the Strategic Community Plan and identifies the acquisition of income-producing property assets as a key investment option to generate income and capital growth.

The City recognises the community interest in land transactions and are committed to informing the community about significant City Property and Commercial Projects that may impact them.

The objectives of the City’s Property and Commercial Projects are:

Implement development/redevelopment of City landholdings
Act as a catalyst for growth and opportunity
Realise commercial and community potential of City landholdings
Generate alternative revenue sources for the City

Get involved here

Lodge a submission about the Major Land Transaction - Proposed Ground Lease,

273 West Coast Highway, Scarborough, by Thursday, 15 January 2026.

Lodge a submission

Project: The Council endorsed the City to undertake a competitive public process via an Expression of Interest (EOI) process seeking ground lease redevelopment proposals from the market for its freehold vacant site situated at 273 West Coast Highway, Scarborough.

The preferred proponent, Lofte Property No.1 Pty Ltd, submission proposal was selected by the Panel after an assessment evaluation of the qualitative selection criteria scored the highest. The Council resolved to approve the preferred proponent and to advertise the major land transaction in accordance with Section 3.59 of the Local Government Act. The transaction is in the form of a conditional long-term ground lease where the preferred proponent (Lessee) will develop a hotel on the site.

In return, the City will receive lease income and rates income over the term of the lease. This Business Plan has been prepared and public submissions sought in order to comply with the City’s obligations for major land transactions.

Any submissions received in response to this Business Plan will be considered as part of Council’s decision as to whether or not the City should proceed with this Major Land Transaction, being the long-term ground lease of the City owned freehold property situated at 273 West Coast Highway, Scarborough for the purpose of a Hotel, details of which are specified in the Business Plan.

Outcome: To achieve this, the City intends to enter into a long-term ground lease of the property with Lofte Property No.1 Pty Ltd being the preferred proponent, for the development of a hotel on the site.

View Plans: Business Plan Major Land Transaction, 273 West Coast Highway, Scarborough

Phase: Consultation Period Wednesday 26 November 2025 - Thursday 15 January 2026 (a seven-week public notice period, both dates inclusive).

Project: The City is undertaking a subdivision project in Scarborough to transform four underutilised lots into eight lots ready for future housing construction.

Outcome: The four lots are owned by the City and have been vacant land since 2016. The subdivision project will create eight lots ready for future owners to build on. This project will assist with the current undersupply of land in the Perth market and provide more housing opportunities in the Scarborough area. Once the subdivision project is completed, it is intended the newly created residential lots will be released to the open market.

Phase: Final stage

Due to delays, the project is expected for practical completion by the end of November 2025.

Following practical completion, the City aims to release these lots to the market in 2026.

Aerial map of 6 - 12 Bazaar Terrace, Scarborough

Project Update: At the Ordinary Meeting of Council 12 Aug 2025, Council resolved the following in relation to the Major Land Transaction Business Plan - Acquisition of Investment Property:

Council Resolution 0825/008

That Council NOTES the submissions received for the Major Land Transaction for the Acquisition of Investment Properties Business Plan consultation.
That Council APPROVES the Major Land Transaction for the Acquisition of Investment Properties Business Plan for a period of four years, as shown in Attachment 1.
That Council APPROVES the Chief Executive Officer, with the prior approval of the Mayor, making an offer on one or more investment properties with a combined purchase price up to $20 million, subject to due diligence, valuation and final Council approval of each property acquisition.

The motion was put and declared CARRIED (13/1) by an Absolute Majority.

Project: The City intends to acquire additional real property assets for investment purposes to add to its property investment portfolio. Investment properties are principally freehold properties, held for long-term rental yields and not occupied by the City.

It continues to be a major strategic objective for the City to generate on-going intergenerational income to allow a dividend reinvestment in the City’s annual budget.

The City’s Land Asset Action Plan 2023-2028, endorsed by Council on 15 August 2023, provides a framework through which the City can make decisions with respect to the management, development, retention, disposal or acquisition of real property. Real property represents an opportunity to begin to deliver considerable on-going financial return for the City’s ratepayers via an ongoing income stream and capital growth.

Under the Local Government Act, a land transaction includes “several agreements for a common purpose” under which the City is to “acquire …. an interest in land”. Over the next 4 years, the City intends to purchase one or more properties that meet the parameters specified in this business plan for the common purpose of growing and diversifying its property investment portfolio.

It is considered that these acquisitions may constitute a “major land transaction” as defined under Section 3.59 of the Local Government Act 1995 and as such the City is required to comply with the requirements as set out in this provision. This Business Plan has been prepared and public submissions sought in order to comply with the City’s obligations for major land transactions. Any submissions received in response to this Business Plan will be considered as part of Council’s decision as to whether or not the City should proceed with this Major Land Transaction, being the acquisition of properties that meet the parameters specified in this Business Plan.

Outcome: To achieve this, the City intends to acquire and retain a portfolio of stable and secure returns. This diversification will contribute to the City’s sustainable economic management by generating alternative revenue streams.

View plans: Major Land Transaction Business Plan

Phase: Consultation closed

A six-week public notice period allowed the community to make a submission on the proposal between Monday 5 May 2025 - Monday 16 June 2025 (both dates inclusive).

Project: The City is undertaking a subdivision project in Yokine to transform two underutilised lots into four lots ready for future housing construction.

Outcome: The two lots are owned by the City and have been vacant land since 2016. The subdivision project will create four lots ready for future owners to build on. This project will assist with the current undersupply of land in the Perth market and provide more housing opportunities in the Yokine area. Once the subdivision project is completed, it is intended the newly created residential lots will be released to the open market.

Phase: Practical completion

All the required works are complete, and the City is in the process of obtaining new titles. Once new titles are created, the City will appoint a selling agent to assist with the lot sales and is anticipating that lots will be released to market in the next couple of months.

Aerial map of 58 - 60 Virgil Avenue, Yokine

Why is the City Ground Leasing the Site?

After extensive investigation and analysis and a public EOI process, the City identified a preference to retain ownership of the site and secure a long term ground lease to generate long term income stream for the City whilst securing planning and economic outcomes through the redevelopment and operation of a Hotel on the site.

What is the Length of the Ground Lease Term?

The ground lease is for an initial term of 50 years with an option for five further terms of 10 years each.

What will be developed on the Site?

If the ground lease is approved, the preferred proponent will seek to obtain all necessary planning approvals and develop a Hotel on the site.

Who will operate the Hotel?

The Hotel will be operated by an experienced hotel operator, attracting local, national and international patrons. The preferred proponent will secure the Hotel operator and manage the arrangement.

How will my involvement influence decision-making?

The Business Plan informs the City's residents and ratepayers of the City's intention to ground lease the property to the preferred proponent to develop and construct a Hotel on the site at the proponent’s cost.

What will happen next?

All submissions to the CEO will be presented to Elected Members and Council will consider the Major Land Transaction Business Plan for approval of the ground lease proposal.

Why is the City buying property?

Real property represents an opportunity to deliver considerable on-going financial return for the City's ratepayers via an ongoing income stream and through capital growth. The Council has set target criteria for selecting suitable properties to buy for the City's property investment portfolio.

What is the budget?

Council approved funding $20,000,000 for the purchase of investment property from the Capital Investment Reserve in November 2024. All income from the property will be held in the Investment Income Reserve.

Will the City be buying vacant land?

The City will be focusing on income-producing property with buildings and other improvements in good condition; leased or suitable for leasing to commercial, retail or industrial tenants. Vacant redevelopment land is currently considered high risk and this is the least desirable acquisition for the Council.

Who decides what properties the City will buy?

The City's in-house expertise, as well as appointed professional consultants and advisors will assist in identifying suitable properties. For each property, the City will also carry out comprehensive due diligence and prepare a business case which will be determined by Council. Any offer to purchase a property will be conditional on Council resolving to proceed.

How will my involvement influence decision making?

The Business Plan informs the City's residents and ratepayers of the City's intent to purchase investment property. Council will consider all submissions prior to proceeding with the Business Plan for 4 years.

What will happen next?

All submissions will be presented to Council and Council will consider the Major Land Transaction Business Plan for the acquisition of one or more investment properties up to $20,000,000 for 4 years.

What about my private property?

To learn about the process when developing your private property based on the type of development you are undertaking please refer to the Develop your property page and the FAQs for development considerations. This page is for City based property projects.