Port Hedland Voluntary Buy-Back Scheme

The PHVBS was in response to zoning changes that make existing permanent residential uses non-conforming under Port Hedland West End Improvement Scheme No 1 (IS1). The zoning changes do not impact commercial or industrial property zonings.
As part of the extension to the PHVBS announced in October 2023, a small number of non-residential properties are also now able to participate. This applies to non-residential properties that are situated in strata complexes where HMI has already acquired residential properties.

Participation in the PHVBS is voluntary.

The PHVBS defines eligible properties as those with Town of Port Hedland approved single houses, grouped dwellings, and multi dwellings, on their own lot or zoned residential under a previous local planning scheme within the area between Taplin Street and the port in the area subject to Port Hedland West End Improvement Scheme 1. The PHVBS does not apply to residential properties in the area owned by the State Government or industry contributing to the funding of the PHVBS. As part of the extension to the PHVBS announced in October 2023, a small number of non-residential properties are also now able to participate. This applies to non-residential properties that are situated in strata complexes where HMI has already acquired residential properties.

The PHVBS only applies to properties within the area of land between Taplin Street and the port in the West End of Port Hedland.

The owners of:

• 404 residential properties; and
• 22 non-residential properties, are estimated to be eligible for the Port Hedland Voluntary Buy-Back Scheme (PHVBS).

The PHVBS applies to the area of land between Taplin Street and the port in the West End of Port Hedland.

Options for property owners include:

• If you are an owner occupier, continue to own and reside in the dwelling;
• If you are an investor, continue to own and rent out your property;
• If you are an investor or owner occupier, retain the land, with a view to future non-permanent residential development options as part of the West End redevelopment ;
• Or accept the PHVBS offer and secure a cash settlement price.

Approximately two thirds of the eligible PHVBS properties are estimated to be owned by property investors and one third are estimated to be owned by owner occupiers.

The rent will be payable to Hedland Maritime Initiative following the settlement of the sale of the property. HMI will follow all the processes required by law to ensure the tenant is notified of ongoing arrangements.

Hedland Maritime Initiative will honour any bona-fide lease that has been entered into and is in force with a bona-fide tenant at the time of the offer.

Hedland Maritime Initiative will honour any bona-fide lease that has been entered, including the rent payable and any provisions in the lease for the variation of the rent. HMI will follow all the processes required by law to ensure the tenant is notified of ongoing arrangements.

This will be an individual arrangement, as everyone’s circumstances are different. However, Hedland Maritime Initiative will honour any bona-fide lease that has been entered into and is in force with a bona-fide tenant at the time of the offer.

Should an existing bona-fide lease be in place at the time of sale, and that lease includes a lessor obligation to provide a furnished property, then the property owner has the following options:

• The seller may choose to sell Hedland Maritime Initiative the furniture at the written down value; or
• Leave the furniture in place and transfer ownership to Hedland Maritime Initiative at a minimal cost.

In both instances, the cost of Hedland Maritime Initiative acquiring the furniture will be reimbursed to the seller as part of the up to $20,000 (inclusive of GST) verifiable transaction costs.

Any such request will be discussed with owners on a case-by-case basis. If you need time to relocate to another location in Port Hedland, Hedland Maritime Initiative could accommodate an extended stay in the property being sold by one of the following means:

• A delayed settlement; or
• A lease back arrangement.

This will be discussed with each owner who is considering participation in the Port Hedland Voluntary Buy-Back Scheme (PHVBS) and wanting to enter a lease back of the property.

Any bona-fide lease agreements will be honoured by Hedland Maritime Initiative if you want to sell the property before the lease comes to an end. Should you wish to enter a new lease before deciding to sell to HMI, that is a matter for you to decide.

Every owner’s situation is different, and owners should fully inform themselves and seek independent advice as to what their best option is, given their individual circumstances.

Eligible owners are encouraged to seek their own financial advice (including banks and financiers) before deciding whether to participate or not participate in the PHVBS.

If you are an owner of eligible property, you should review the information released by the WA Planning Commission regarding the changes to the land use under the Port Hedland West End Improvement Scheme No. 1 (IS1).

Participation in the PHVBS is voluntary and owners should inform themselves of the opportunities and risks in participating. The Hedland Maritime Initiative will provide eligible property owners with information to assist them in making an informed choice about whether to participate in the PHVBS or not. The objective of the PHVBS is to provide residential property owners with the opportunity to sell their property for a guaranteed settlement price if they are concerned around the potential impact on property values caused by changes in the land use zoning. Property owners should form their own view of that.

The eligible owners will have the option to use the Port Hedland Voluntary Buy-Back Scheme (PHVBS) offer towards the purchase of another property. Hedland Maritime Initiative is working with the PHVBS Steering Committee to identify residential land and built form options outside of the West End. When details of these options are available, they will be shared with the interested eligible property owners. The PHVBS offer can also be used to offset the price of another existing property outside of the West End.

Participation in the PHVBS is voluntary and eligible residential property owners will need to consider their own circumstances and seek any advice they consider necessary when considering whether to participate in the PHVBS. The terms of the PHVBS offer were set by Government, this includes the date of valuation, indexation and the 35 per cent premium.

The gazettal of Port Hedland West End Improvement Scheme No.1 (IS1) does not impact on the ability of a landowner to continue to rent out their property. If a landowner requires more detail on matters relating to Port Hedland West End Improvement Scheme No 1 (IS1), they should contact the Department of Planning Lands and Heritage.

The property valuation will be determined at the 6 August 2019 date, but include consideration for any improvements made to the property since 6 August 2019 as identified at the date of inspection. Property owners will need to make their own decision and seek advice necessary to determine the best option in their particular circumstance.