PORT Bouvard has pulled out of its plans to develop a townsite at Gidgegannup, admitting that the project is not financially viable.
The decision came late this week after the company announced a new cornerstone investor FKP, which will take a 30 per cent stake of Port Bouvard.
The company’s cancellation of options on Gidgegannup landholdings comes after almost three years of negotiations over the site.
“This agreement has implications for our Gidgegannup project and at this stage we have negotiated with Riseley Investments to cancel our future options for the nominated townsite and rural land holdings,” Port Bouvard CEO John Wroth said.
“It is a disappointment to us that Port Bouvard will not realise this vision, but for the long-term sustainability of our company, we must focus on projects that are financially viable.”
The future of the 463ha designated as Gidgegannup town centre will return to original owner Michael Coleman.
Gidgegannup Progress Association president Sally Block said the Gidgegannup community was relieved but not surprised.
“We accept that the townsite will be developed, if not by Port Bouvard then by someone else,” she said.
“We hope that someone else would have a much more encompassing consultation process with the community.”
City of Swan planning and development manager Scott Hollingworth said the City and the Gidgegannup community had invested a lot of time and effort helping Port Bouvard plan the proposed development.
“While it is disappointing that Port Bouvard is unable to proceed with the project, the City is confident that Gidgegannup has a bright future as a desirable place to live and invest.”