The Royal George Hotel has been an ongoing development.
The State Government sold the property in 2017 to Saracen Property group for $627,000, which compares to similar properties such as the Coogee Hotel, which Main Roads WA sold for $2.3 million.
In June the Town of East Fremantle original scheme amendments restricted any development to six storeys.
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READ NOWThe original amendment is similar to one made by the City of Swan to cap any development on the Guilford Hotel site to five storeys.
A spokeswoman from the previous owner of the hotel the National Trust said they called for an expression of interest in 2006 for an adaptive reuse of the site.
“The successful respondent to the National Trust’s call for expressions of interest for the adaptive reuse of the Royal George Hotel in 2006 was Westbridge Property Group,” she said.
“There was no outcome from this process, the National Trust surrendered the title to the State Government in 2015 and has had no involvement in the place since that time.”
A spokesman for the Department of Planning, Lands and Heritage said in 2013 the Saracen Property Group submitted a proposal to the National Trust to restore and redevelop the hotel.
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“The National Trust commenced negotiations with Saracen Property Group, on the basis of a sale of the property,” he said.
“Under the then conditional tenure a sale by the National Trust was not possible and in 2016 the Trust transferred the site to the State.
“Following the transfer, the then Department of Lands and State Heritage Office (now Department of Planning, Lands and Heritage) continued negotiations with Saracen Property Group.”
A Department of Planning, Lands and Heritage spokesman said the purchase price was determined by the valuer general.
“The valuer general taking into account the significant heritage conservation works required to be undertaken on the hotel,” he said.
Saracen Developers have been involved in numerous developments in Perth including Quest West Perth and Raine Square.