LAS Group Wins Approvals for $700m Southbank Towers

Two separate proposals to build FK-designed apartment towers on former Crown Resorts land at Southbank have been approved.

The towers of 52 and 25 storeys were proposed by Melbourne developer LAS Group.

The way was cleared for the projects, which have a combined end value of $700 million, by the acquisition of air rights over the casino’s carpark as well as a flood mitigation strategy put forward after a refusal for one of the projects this year.

The City of Melbourne granted a permit for a 52-storey, 180.4m tower on the 1544sq m site at 101 Clarendon Street that will comprise 510 apartments—358 one-bedroom and 152 two-bedroom units.

Communal facilities include a 20m pool, wellness room and a slew of indoor and outdoor spaces for residents. The project has an estimated development cost of $160 million and an end value of $511 million. Completion is scheduled for 2029.

A second tower at 38 Clarke Street (pictured top) comprising 188 one and two-bedroom apartments across 25 levels was also approved. The smaller building, with a pool, gym, cold plunge and sauna, has an estimated end value of $187 million and is due for completion in 2028.

LAS Group founder Les Smith paid around $30 million for the two sites on Clarendon Street and City Road, according to market sources.

The combined sites, totalling 3822sq m, were owned by Crown Resorts and included lowrise offices and warehouses acquired from the casino operator in 2022.

Crucial to the development was LAS Group’s acquisition of air rights over Crown’s multilevel carpark next to both sites. The rights prevent Crown from building above the carpark and protect sight lines for the proposed towers.

▲ Renderings of LAS Group’s approved tower at 101 Clarendon Street.

The 38 Clarke Street tower faced complications when Melbourne Water refused to support the application in June due to flood risk concerns. The authority determined the land was subject to flooding from multiple sources, including the Yarra River.

In response, LAS Group redesigned the project, raising the flood protection level to 3.03m above sea level, exceeding Melbourne Water’s required 2.43m for the site.

Almost immediately after the Clarke Street setback, LAS Group filed plans for the larger Clarendon Street tower, which excluded a basement level to cut flooding risks on the low-lying Southbank site.

LAS Group projects in the Victorian capital include the Guild Apartments at Southbank and The Fawkner tower on St Kilda Road. The group also sold its Northcote Plaza site to developer Time and Place for $60 million in 2021, where a $500-million mixed-use project is planned.