Sheng Le Cashes in Southbank Super-Site


Chinese-backed Sheng Le Group is walking away from plans for a $900 million residential and hotel tower in central Melbourne, listing its permit-approved 6,200sq m super-site.

The irregular, wedge-shaped site, located between from 87-127 Queens Bridge Street in Southbank, extends all the way to City Road and is within walking distance of Crown casino.

Sheng Le originally amalgamated four lots for a combined $103 million between 2014 and 2016, lodging initial plans in 2015 before securing approval for a 47-storey mixed-use development midway through 2018.

The approved tower, dubbed Queens Bridge Place, was co-designed by Fender Katsalidis and Cox Architects. It would comprise 733 apartments and 188 guest rooms, along with 1,300sq m of ground-level retail and 5,000sq m of office space.

It would also create a 1,465sq m pedestrian link between Queensbridge Street and City Road, as well as shops and offices.

The project will also integrate aspects of the former Robur Tea warehouse and the heritage-protected Castlemaine Brewery into its design.

Related: CostaFox Snaps Up Heritage Tea House for $28m

▲ Sheng Le's 47-storey residential and hotel tower on Queensbridge Street was been approved in 2018 following a three year planning process. Image: Fender Katsalidis, Cox Architects
▲ Sheng Le's 47-storey residential and hotel tower on Queensbridge Street was been approved in 2018 following a three year planning process. Image: Fender Katsalidis, Cox Architects

Following a number of direct approaches, Sheng Le Group now looks resigned to selling the site that could see an incoming developer deliver upwards of 73,000sq m through a range of schemes.

Colliers International agents Trent Hobart, Rob Joyes and Jozef Dickinson, and JLL agents Josh Rutman, Leigh Melbourne and Piers Jalland have been enlisted by Sheng Le to market the land parcel via an international expressions of interest sale.

Hobart said the site had the potential to follow a number of successful mixed-use developments, including Freshwater Place; the $200 million sale of 7-23 Spencer Street to Mirvac; Treasury Square and the recently-completed Collins Arch.

Joyes said Melbourne’s market outlook remained incredibly strong despite the recent Covid-19 restrictions.

“Our residential development team believe there will be few opportunities of this scale over the next five to 10 years,” Joyes said.

“Infrastructure investment totalling billions of dollars will shape Southbank in the future and directly benefit Queens Bridge Place, marking this as a rare buying opportunity for any buyer looking to forward-plan their development pipeline, whether that be a combination of office, residential, hotel or build-to-rent.”

Nearby, developer Beulah is pressing ahead with construction of the country’s tallest building as part of a $2 billion redevelopment of the BMW site in Melbourne’s Southbank.

Beulah's plan for twisting, terraced towers on the site of the BMW dealership will create 789 apartments, a 322-key hotel, 27,000sq m of office space and 32,000sq m of retail space.


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