Gurner Scales Back Gold Coast Mega-Tower Project

Not a sod has been turned in the three years since high-profile luxury developer Tim Gurner gained approval for a $1.75-billion four-tower development in Surfers Paradise. But finally there is a hint that something may be about to happen—albeit not the same “something incredible” he had first envisioned. Scaled-back plans have been filed by his Melbourne-based Gurner Group to reduce its La Pelago project from four to three towers—citing “changed market conditions, constructability and design efficiencies”. According to the change application, however, the amended design “continues to represent a high-quality residential-led, mixed-use development”. The revised scheme involved a “consolidation of approved Towers 1 and 2 into a single 34 storey tower comprising 267 units”, it said. Under the existing approved plans, Tower 1 was already planned to rise 34 storeys and, effectively, the reworked proposal removes the 27-storey Tower 2. Overall, despite being reduced to a trio of towers, the project would accommodate just 17 fewer apartments than the approved four-tower scheme. That is, 1248 instead of 1265 units—most with flexible residential/short-term accommodation use. A total of 981 apartments would be spread across the other two 33-storey and 61-storey towers. La Pelago is Gurner’s development debut into the Gold Coast market but its failure to progress to construction so far has sparked speculation over the project’s viability given prevailing industry challenges. But the developer has previously dismissed suggestions that deposits were being refunded to off-the-plan buyers in the project. “We have planning approval in place and we are working exclusively with a tier one contractor to finalise a price so we can start construction,” Gurner told media in October 2023. ▲ A rendering of the tower now proposed for Gurner’s Budds Beach site. But notably he added: “Labour in Queensland is still in short supply due to the unprecedented pipeline of government infrastructure projects either under way or planned to start”. La Pelago is earmarked for a 1.2ha supersite in Budds Beach at the northern end of Surfers Paradise. Gurner swooped on the prime holding in 2019 after Sydney-based developer Ralan Group collapsed with debts of more than $560 million. Encompassing a block bounded by Ferny, Norfolk, Pine and Oak avenues, it was acquired with an existing approval for a 1000-apartment scheme that was subsequently redesigned—drawing inspiration from “some of the world’s most exclusive private archipelago resorts”—by architecture firm Warren &amp; Mahoney. “The vision for La Pelago really came together in 2020 when I was in lockdown at home with my family in Melbourne, thinking there has to be a way to bring an unparalleled resort lifestyle into a residential setting in Australia that’s only two hours from Sydney and Melbourne as opposed to six hours to Bali or Fiji,” Gurner said at the time of the project’s launch. La Pelago’s proposed scaled-back scheme has been designed by MAS Architecture Studio and would still be delivered in three stages. As well as a slight decrease in apartment yield, the revised plans also include a reduction in non-residential space from 3733sq m to 3314sq m for food and drink outlet, retail, community and healthcare uses. Aligning with the approved design’s much-spruiked expansive resort-style amenities—including pools, lagoons, wellness and relaxation areas—the rejigged scheme features an increase in communal open space from 13,152sq m to 14,314sq m across the podium and tower levels. ▲ Rare opportunity: Cunningham Pier at Geelong. Gurner, Costa to transform heritage pier Meanwhile, a “once-in-a-generation” partnership between Gurner Group and Costa Property Group plans to put Geelong on the global map with a proposal to transform Cunningham Pier into a world-class waterfront destination. The collaboration wants to realise the late Frank Costa’s vision for the pier through a concept featuring six-star hotel accommodation, luxury homes, restaurants and bars, entertainment venues and potential cruise ship facilities. Tim Gurner said the project represented a rare opportunity to create an iconic Australian landmark, “to create our version of what icons like the Opera House, Story Bridge or Empire State Building have done for other great cities”. The concept, dubbed “Saint Moritz on the Sea”, would draw inspiration from Sydney Harbour’s luxury residential towers and Dubai’s sculptural pier-edge developments. Costa Property Group has operated the heritage pier for more than 15 years after Frank Costa bought the site in 2006. Costa was a prominent figure in Geelong for more than four decades after inheriting Costa Group, the family produce business, in the late 1950s. The company became Australia’s largest fruit and vegetable wholesaler with operations across five states. His widow, Shirley Costa, said her husband had always believed the pier could become something special. “It means so much to know his vision is finally moving forward, and I know he’d be smiling to see it come to life for the city he loved,” she said. Costa Property Group chief executive Carl Schokman said the partnership would not only deliver a vision fulfilling Frank Costa’s legacy, but would also “be a focal point for tourism and architectural excellence—a once-in-a-generation opportunity”. ▲ Frank Costa’s window Shirley Costa, Geelong mayor Stretch Kontelj and Tim Gurner after the proposal was announced at the pier on October 17. The partnership’s plans align with the City of Greater Geelong’s Draft Waterfront Master Plan, which seeks to revitalise the foreshore through tourism-led development. Gurner said the project would maintain public waterfront access while delivering architectural excellence. “This project brings together everything we’ve built our brand on—world-class design, hospitality, lifestyle, and experience—all in one place,” he said. Mayor Stretch Kontelj said the project would complement the opening of Nyaal Banyul Geelong Convention and Event Centre in 2026. The partners will collaborate with the council to finalise the next development stage. Large-scale development is gathering momentum in Geelong, with the state recently fast-tracking 270 apartments across two sites and the Committee for Geelong unveiling a $1-billion vision to transform Market Square into a mixed-use precinct featuring more than 300 apartments and public green space.

Gurner Scales Back Gold Coast Mega-Tower Project

Want to read more?

Sydney Pub Market Rebounds After Post-Covid Lows

Bhutan’s Mindfulness Masterplan Resetting How Cities Work

Time to Rethink: Fresh Bid to Unlock Prison’s Prime Site for Homes

‘The Machinery Underneath is Broken’: Inside NSW’s Housing Divide

Queensland Decade of Gigaprojects a Developer’s Goldmine

Fireside Chat | Inside GemLife With Adrian Puljich

Building Australia's Newest Airport: Multiplex

The Makers Of The Mondrian | Design, Vision And Delivery Behind One Of Australia’s Most Anticipated Luxury Hotels

Next Gen Now | How Emerging Developers Are Redefining The Game

Scape Eyes University Campus Accommodation Takeovers

Briscoe Greenlit for ‘Transformative’ Tweed Project

How Rising Costs are Rewriting Portfolio Strategies

Queensland Seeks Developer for South Brisbane Visy Site

Women’s Leadership Lunch

Commercial Real Estate Summit

Urban Leader Awards

Property Development Masterclass | Melbourne