Zoning exemption for gigantic tower
The apartment business in Melbourne has taken a downturn, causing some business analysts to question the efficacy of a massive new residential tower planned by James Packer’s Crown Resorts.
According to the Sydney Morning Herald, Crown Resorts is “struggling” to find support for its Queensbridge luxury hotel and apartment complex, which would include 388 hotel rooms and 708 apartments. Crown CFO Ken Barton says the company hasn’t been able to find a partner on the project, which at 323 meters (1,059 feet) would be Australia’s tallest skyscraper.
At the same time, the Crown Sydney Resort at Barangaroo in Sydney is also under fire from residents who complain it will block their harbor views. That project includes 350 hotel rooms, a luxury apartment and VIP gaming facilities.
“It’s the residential piece that’s been a struggle,” Barton said about the Melbourne project during Crown’s annual results call. “The struggle has been finding someone who wants to have the kind of residential risk-sharing that we are looking to accomplish. That’s where the hard work has been.”
Barton said Crown had been “working for some time” to get financing and identify partners who want to get in on the project, which must be in the ground by next February. “We’re considering what we need to do and be in a position to commence or have an extension,” Barton said during the call.
The Herald reports that the Victorian government made an exception for Crown allowing the company to exceed size limits for the hotel tower by more than three times. Critics called it a “free kick” for Crown, but Premier Daniel Andrews said the One Queensbridge project warranted the amendment, because it will be of “state significance.”
Barton also defended the decision, saying, “When you look at our hotel capacity, we are at over 90 percent across all our 1,600 rooms.”
