Developer eyes $1bn Melbourne tower to rival ‘Pantscraper’
Cbus Property could embark on a $1 billion project to rival the Pantscraper building in size and scale as new developments push ahead in Melbourne, with local developers picking up the slack as foreign developers tread with caution.
The industry super fund-backed developer has spent about $180 million to snap up four sites in the Melbourne CBD, including locations where apartment projects had stalled for years.
The price could be the highest paid for a central Melbourne development site, after Cbus Property paid $100 million for the Pantscraper site, the Melbourne Square site traded for $145 million and Beulah International bought the BMW site for about $101 million.
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Cbus Property bought 150 Queen St from Singapore’s Chip Eng Seng, which had intended to redevelop a commercial block into the residential Tower Melbourne before scrapping plans and saying it would return buyers’ deposits last year.
The project had been mired in a legal dispute with the owner of adjoining property 140 Queen St, Singapore’s Colonial Range, which Cbus Property also bought as part of the deal, along with one other holding at neighbouring 27 McKillop St from the same vendor. The buyer also swooped on 423 Bourke St, adjacent to 150 Queen St, creating a significant holding on the city block. Colliers International’s John Marasco, Bryson Cameron, Matt Stagg and Trent Hobart brokered the deal.
Cbus Property could go back to the drawing board in terms of planning as the site could take a residential, office or mixed use development.
Cbus Property bought the Mercure hotel in Melbourne for more than $70 million last year, also through Colliers International, with the developer planning a luxury residential tower.
The group is to develop the massive Collins Arch or Pantscraper mixed-use project, where two towers joined by a bridge will include office space, apartments and a hotel.
Despite worries about a high level of supply of investor grade inner city apartments in Melbourne, major developers are pushing ahead with high-end premium residential offerings or longer-term projects ready for the next cycle.
A recent report from JLL said last year would be close to the residential supply peak in the city’s CBD, with 7800 dwellings to be completed.
But about 86,000 homes could be added to the CBD across 274 projects by 2022, the report adds.
“There are currently 13,500 apartments under construction in Melbourne’s CBD (including Docklands and Southbank) in 35 projects (greater than 50 dwellings) with completion expected through to 2021,” the report, titled Melbourne’s Changing Skyline, says.
“If those under construction and those being marketed proceed the number of completed dwellings will average in excess of 5000 apartments per year for the next three years.’’
– with Elizabeth Redman
This article originally appeared on www.theaustralian.com.au/property.
