An 18 storey development in central Perth has been given the go ahead after two years of planning.

The St Georges Terrace development has been designed by HASSELL Architects Perth for property owner Perpetual Nominees, headed by principal Dirk Collins.

The current site for the development includes two buildings, known as the Capita Centre, including a five level office building fronting Mounts Bay Road and the 13 level office building and terrace area fronting Mill Street, which will be demolished in order to substantially redevelop the site.

The proposed redevelopment also includes the refurbishment of the ground and first floor levels of the existing 28 level tower fronting St Georges Terrace for retail, lobby and servicing and a new 2516squm area central to the site connecting Mill Street, St Georges Terrace and the plaza space of the adjacent Forrest Centre.

The plaza area will be bordered by retail (food and beverage) tenancies, contain hard and soft landscaping, public seating and bicycle parking facilities.

Perth City Council noted in council documents that the development, “will enhance activity and interest in the immediate locality".

"The design of the ground level will enhance the vitality of the proposed public plazas and created a space that will be safe and inviting and accessible to all users."

The approval is the latest in a string of development approvals in the city including an eight-level mixed-use building on Hay Street in West Perth, and an 11-storey mixed-use development at the old Lee Garden Chinese restaurant site on Plain Street in East Perth.