Pace’s $91m Tower Approved as Frankston Pipeline Swells

A 14-storey mixed-use tower has been waved ahead for the site of a former cinema at Frankston that has been derelict for more than a decade.

Frankston City Council has approved Melbourne-based Pace Development Group’s $91-million proposal for the site at 438-444 Nepean Highway, the site of the Frankston Cinema that closed in March of 2014.

The tower will comprise 144 apartments, retail spaces, two hospitality venues, wellness centre and gymnasium, as well as 202 carparking spaces across three basement levels.

Construction is scheduled to begin early next year ahead of completion by early 2030, according to the planning application.

Frankston is 54km south of the Melbourne CBD by road.

Pace Development Group managing director Shane Wilkinson believes Frankston is “on the cusp of major change thanks to the forward-thinking vision of the Frankston City Council”.

The site has a complex planning history. The council initially rejected Pace’s 16-storey proposal in April of 2023, and the Victorian Civil and Administrative Tribunal upheld that decision in July the next year.

VCAT found that the height was inappropriate for the sensitive Kananook Creek location and criticised the lack of skyline variation compared to neighbouring developments.

However, Victorian planning minister Sonya Kilkenny’s approval of the council’s Frankston Metropolitan Activity Centre Structure Plan in April meant the developer was able to realign its proposal with council expectations.

The Pace development joins a wave of private investment reshaping Frankston’s central business district.

Seven other mixed-use developments have been approved or completed for a total of 770 apartments.

Mayor Kris Bolam said the current list of approved and recently completed projects in Frankston City was valued at $506 million.

That includes Urban DC’s two projects totalling $222 million—its Horizon Frankston at 1 Plowman Place was recently completed and its Harbour development at 446-450 Nepean Highway began construction in May.

▲ Rendering of the Elenberg Fraser-designed Horizon Frankston apartments at 1 Plowman Place that completed last year.

Other approved developments include OYOB Property Group’s $65-million Nepean Frankston project of 105 apartments and Pitard Group’s $33-million development at 35 Playne Street comprising 86 homes.

The private development activity coincides with major public infrastructure investment in the area.

The $1.1-billion Frankston Hospital redevelopment is nearing completion and will be rebranded as Peninsula University Hospital when it opens early next year.

The expanded facility is expected to support an additional 35,000 patients yearly, adding 130 beds and 15 new operating theatres.

The hospital’s collaboration with Monash University will include more than 940 students annually and expand its clinical placement programs, generating additional demand for accommodation and commercial services.

The council has implemented policy measures aimed at accelerating development, including differential rates targeting vacant city centre properties at three times the general rate to discourage land banking and streamlined assessment processes for major applications.