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GENERAL PROPERTY HOTEL, TOURISM & LEISURE RESIDENTIAL PROPERTY

Crown luxury tower waiting for funding

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AFTER months of speculation, James Packer’s Crown Resorts revealed its luxury One Queensbridge project, has not obtained finance. At the same time, Crown has launched legal action against the New South Wales government over views in Barangaroo.

Crown has commenced proceedings against the Barangaroo Delivery Authority (BDA) in the Supreme Court of New South Wales, claiming that another development will threaten its views.

Crown is seeking injunctive relief and declarations against the BDA that, in substance, require the BDA to comply with a number of its contractual obligations under the Crown Development Agreement (CDA).

“These obligations include consulting with Crown about any application for the proposed development of Central Barangaroo that differs from that provided for in the relevant Concept Plan for Central Barangaroo in existence at the time the CDA was entered into.

“And negotiating in good faith and agreeing with Crown and Lendlease any required changes to that application to ensure that sight lines from the Harbour Bridge to the Sydney Opera House are retained for the Crown Sydney Hotel Resort,” Crown said.

Crown’s legal action comes after the BDA awarded a consortium of Grocon, Aqualand and Vicinity to deliver Central Barangaroo – the final stage of the Barangaroo development.

The 5.2ha precinct will comprise cultural and civic spaces, restaurants, a retail centre, apartments and office space.

Crown is concerned that Central Barangaroo development will obstruct Crown Sydney Hotel Resort’s view of the Sydney Harbour Bridge and Sydney Opera House.

Meanwhile Crown said construction of the Crown Sydney Hotel Resort is progressing on schedule with the podium rising on the Barangaroo foreshore and the tower core structure having been constructed to Level 6. With stage 1 sales achieved, Crown has commenced its stage 2 international marketing campaign.

The project remains on schedule for completion in the first half of calendar year 2021 and the total gross project cost is expected to be approximately $2.2 billion, with a net project cost of approximately $1.4 billion.

However the same cannot be said for its One Queensbridge project in Melbourne, which has been held up due to financing.

Crown and the Schiavello Group were granted planning approval in February 2017 for the 388-room six-star hotel and approximately 700 apartments, set to become Australia’s tallest building.

However Crown yesterday revealed that the project remains subject to financing.

It is unclear whether Crown has obtained an extension on the project.

Australian Property Journal