Dexus Receives Approval For Controversial $300m Tower

Dexus Property Group has received planning approval for its $300 million apartment project in Melbourne's CBD, according to The Australian Financial Review.

The two towers will stand at the 539 bay car park built over 10 levels constructed in 1998 which Dexus owns.

The current property services residential and office patrons, as well as visitors to the MCG, Melbourne Park and Federation Square. The car park has dual access to Flinders Street and Flinders Lane.

According to The AFR, planning minister Richard Wynne quietly approved the project in late July this year according to the planning register.

A Dexus spokesperson told The AFR that "The planning approval is a result of a collaborative approach with council and the state government to achieve a great outcome and demonstrates our ability to continue to reposition assets and add value in our portfolio."

According to The AFR, plans for the project were lodged in 2014, before Mr Wynne introduced controls on development in the CBD last year.

City Hall remained firm and recommended against the development at a meeting at the end of 2015.

"The proposal by virtue of its height and inadequate tower setbacks will have an overbearing and adverse impact upon amenity of the public realm," city council said. The two towers were cut back to one with 56 storeys and one with 18 levels. But by November the taller tower had reportedly been reduced further to 54 levels, according to the AFR article.

Dexus manages a $14.1bn office portfolio and is the largest owner of office buildings in Sydney's CBD.