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A render showing what homes inside of the STH BNK By Beulah development could have looked like.<\/p>\n
The $2.7bn super-sized Southbank tower that was supposed to become Australia\u2019s tallest skyscraper appears to have finally succumbed to the nation\u2019s building cost crisis. <\/p>\n
Receivers have pushed the property planned to host the STH BNK by Beulah landmark to sale after the project management entity set up to operate the project, BSSPV Pty Ltd, went into administration last year. <\/p>\n
The developer behind it, Beulah, had been working to save the project, but industry sources have indicated while a builder had been close to being appointed the cost increase caused by fuel price hikes amid the war in Iran had scuppered those talks.<\/p>\n
RELATED: Plans to build the country\u2019s tallest tower in Melbourne run into trouble<\/a><\/p>\n STH BNK by Beulah: First look at luxury atop city\u2019s future tallest tower<\/a><\/p>\n $38m Melbourne apartment record set for STH BNK full-floor pad five years from being built<\/a><\/p>\n Listing agents at Cushman and Wakefield and at Stonebridge Property Group refused to clarify price expectations, though haven\u2019t ruled out the possibility a new buyer could save it.<\/p>\n But it is expected the receivers will look to recoup at least the acquisition costs of the 7706sq m site that includes 118 City Rd and 158 City Rd.<\/p>\n That would put it into nine-figure territory, with Beulah having spent $101m to buy the former home of BMW Southbank at No. 118 and a further $40m-plus for Hanover House at No. 158. <\/p>\n Planning had slated the twin-tower complex to become a 789-apartment precinct that would have included the nation\u2019s tallest tower standing a colossal 366m tall, including an observation deck and hotel, as well as a green-spined design intended to bring an urban forest into the sky.<\/p>\n A spokesperson from Beulah confirmed receivers were appointed to the two Southbank sites late last year.<\/p>\n The future landmark had been expected to have a helix-style design with extensive vertical greenery.<\/p>\n The staggering site would have joined a list of sky high complexes in Southbank.<\/p>\n \u201cSince then, we have been progressing a range of parallel strategies, including refinancing the sites and engaging with potential joint venture partners, with a potential sale process forming part of these considerations,\u201d they said.<\/p>\n \u201cWe are continuing to work constructively with all relevant parties to achieve a refinancing outcome and progress a resolution.<\/p>\n \u201cThe current campaign does not preclude the project proceeding, and presents an opportunity for an incoming party to realise the site\u2019s development potential.\u201d<\/p>\n The developer noted that rising construction costs continued to present challenges, though they intended to keep working with stakeholders towards a \u201cpositive outcome for all involved\u201d. <\/p>\n The site has millions of dollars in pre-sale deposits associated with it, with some buyers having signed up for $35m purchase prices for the top homes in the complex. <\/p>\n \u201cAll purchaser deposits remain securely held in the project lawyers\u2019 trust account in accordance with the Contract of Sale and applicable legislation,\u201d the Beulah spokesperson said. <\/p>\n \u201cThese funds remain protected under the contractual arrangements and continue to accrue interest while held in trust.\u201d<\/p>\n Renders showing a proposed podium rooftop area for residents and visitors.<\/p>\n Lavish planned residences in the building have already been sold for prices north of $30m.<\/p>\n The property listing is being slated as a \u201creceivers sale\u201d at the hands of Alvarez & Marsal and KordaMentha.<\/p>\n The commercial real state firm have tagged it as a generational development opportunity in Southbank\u2019s riverside precinct. <\/p>\n It is being marketed with the scope for residential, build-to-rent, hotel or commercial development. <\/p>\n It could also be carved up with the two sites sold off separately, including the 6191sq m former home of BMW in Southbank.<\/p>\n The second site at 158 City Rd covers 1515sq m and currently hosts a five-storey office building.<\/p>\n The development had promised true skyhomes for future residents.<\/p>\n Developers had been expecting to create impressive residences to match the sky-high size of the complex.<\/p>\n Cushman and Wakefield agents including Daniel Wolman, Leon Ma and Oliver Hay, as well as Stonebridge Property Group sales agents including Julian White and Chao Zhang will work on the sale.<\/p>\n Mr Wolman said they expected interest from investors, offshore developers and syndicates.<\/p>\n Mr Ma noted that there were groups out there with the capacity to buy the site and finish off the project as planned, saving the site as Australia\u2019s tallest tower. However, he noted that it would still need to stack up for them financially, which was less certain. <\/p>\n \u201cBut yes, there is a possibility it goes ahead as the plans and permits are all in place,\u201d he said.<\/p>\n Mr White said the capacity for immense scale, and its location set it apart as a future project site.<\/p>\n At up to 366m tall, it would have become Australia\u2019s tallest skyscraper.<\/p>\n Most residences were intended to have expansive views of Melbourne\u2019s suburbs, the CBD and beyond.<\/p>\n \u201cIt\u2019s an amazing piece of real estate and it\u2019s incredible what you could do,\u201d he said. <\/p>\n \u201cThe scale of it and the location \u2026 and there\u2019s so much happening in Southbank.\u201d<\/p>\n The suburb is already home to Melbourne\u2019s two tallest towers, Eureka and Australia 108. <\/p>\n Melbourne Lord Mayor Nick Reece said the listing was disappointing. <\/p>\n \u201cIt\u2019s obviously disappointing to see a project of this ambition reach this point,\u201d Mr Reece said. <\/p>\n \u201cSTH BNK was designed by world\u2011class architects, and in the right hands still has the potential to be a standout addition to Melbourne\u2019s skyline.<\/p>\n \u201cHowever, this is also a rare, city\u2011shaping site in the heart of Southbank on the river. It\u2019s time for a fresh injection of energy to get this empty site activated \u2013 so it can deliver high\u2011quality homes, retail, community amenity for our growing population.<\/p>\n \u201cWe will work with all interested parties to ensure that the huge development opportunity on this site is not lost.\u201d<\/p>\n The announcement of the sale was labelled sad news by industry insiders. <\/p>\n Wizel Property Group founder Mark Wizel, who sold a number of the sites in the past, said Beulah\u2019s vision had been \u201cexactly the kind of bold, design-led thinking Melbourne needed\u201d. <\/p>\n \u201cIt\u2019s disappointing that vision hasn\u2019t been realised, but it speaks more to the current economic climate than the quality of the ambition,\u201d Mr Wizel said. <\/p>\n \u201cAs the site returns to market through a receivership processs, we\u2019re likely to see a shift towards more traditional, deliverable residential outcomes.<\/p>\n \u201cWhile that may lack some of the architectural flair originally proposed, it aligns with a very real and urgend need for more housing supply.\u201d<\/p>\n An expressions of interest campaign is set to commence in May and is expected to end with offers due by June.<\/p>\n Sign up to the Herald Sun Weekly Real Estate Update. 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