A bold plan to build a $1.8 billion twin towers World Trade Center east of Northbridge is all but dead, after the State Government put the development “on hold”.

Former premier Colin Barnett revealed ahead of last year’s election that his government supported a consortium’s bid to redevelop the old Myer Megamart site between Beaufort and Stirling streets.

But the McGowan Government is concerned that some of the land required for the 3ha development would be crucial to future rail line infrastructure and is not prepared to negotiate its sale or lease.

“The proposed site is one of the most strategic, complex and operationally intense locations on the metropolitan rail network and it will play an increasingly vital role as Perth grows,” Transport and Planning Minister Rita Saffioti said.

“With that in mind, the process has been put on hold until the implications on the rail network and wider strategic planning can be further considered.”

The proposed World Trade Center, the registered name for dozens of similar developments around the world, would have featured 75-storey and 36-storey buildings with a hotel, apartments, commercial offices and retail space.

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Jordanian millionaire Ghazi Abu Nahl was the driving force for the Perth World Trade Center and attended the project launch with Mr Barnett in January last year.

Mr Abu Nahl said that other centres had become hubs that encouraged international trade.

“That a developer is willing to make this investment demonstrates strong confidence in the future of Perth,” Mr Barnett said at the time.

“(It) has the ability to stimulate diverse trade and investment opportunities for the State.”

Camera Icon A World Trade Center was proposed for the Myer Megamart site Credit: .

Perth businessman Neil Kidd, who has been the proposal’s business development manager, was disappointed to hear the Government had shelved the plan.

“I have had some meetings with Government representatives but haven’t been able to speak with the minister and that is frustrating,” he said. “This is a lost opportunity for WA, but if the State doesn’t want it then that’s it.”

Mr Kidd said he believed the development could have used the railway land at the end of Roe Street without jeopardising future rail planning.

“This sort of development happens all over the world so we’re sure it could have worked in Perth,” he said.