Construction on an 80-bed Perth aged care facility has been delayed, after builder PS Construction withdrew from the project, citing the complexity and cost of aged care builds as the reasons.

The site at 16-18 Betty Street and 73-75 Doonan Road, Nedlands, 7km southwest from the centre of Perth, was formerly the location of Melvista Nursing Home, which was vacant for a decade and has now been demolished. Melvista Lodge retirement village sits adjacent to the site.

In March 2021, Oryx Developments was granted approval to build a $35 million contemporary aged care product on the site, including basement parking, café and wellness centre.

Following objections from the local community, the developer was given 18 months to begin construction on the four-storey project, rather than the usual two years.

In December 2022, in the wake of COVID-19, Oryx applied to the WA Planning Commission for a two-year extension but were granted only a one year extension, with the aim of commencing construction in May or June 2023.

In February 2023, PS Construction withdrew from the project.

In a letter to Oryx, PS Construction wrote, “In the current over heated market, aged care projects have proven to be more complex to manage and are a higher order of cost and time risk than other forms of construction, compared with the projects on our books and currently available to use for tendering.

“We [are] … avoiding complicated projects in favour of more simple projects like education, industrial, distribution, warehouses.”

EMCO Construction will now take on the build.

Oryx’s Founder and Managing Director Toby Browne-Cooper told The SOURCE, “This should not be controversial. The design has aligned with all applicable guidelines from the outset, and we have followed the rules every step of the way. It should not be this hard.”

Work will commence as soon as the State and Local Authority process the Building Permit, which was recently submitted by EMCO.

“The delays have added material cost to the project but we remain on track to open by late next year,” Toby said.

“The demand for aged care in Nedlands and Dalkeith continues to grow and there is currently no aged care accommodation available in Nedlands south of Stirling Hwy.

“The Melvista aged care home will continue Oryx’s innovative delivery of the Small Household Model which, coupled with an on-site rehabilitation and wellness centre, was endorsed by the Royal Commission.”