VCAT Greenlights Carlton PBSA Tower After 12-Storey Cut

The way has been cleared for a student accommodation project at Carlton after significant cuts to the proposal won over authorities.

Panorama Investment Corporation Pty Ltd, a vehicle associated in ASIC documents with director Ying Zhang, submitted plans for the development at 21-25 Bouverie Street in 2024. 

The 2247sq m site was acquired in 2014 for $11.4 million, according to realcommercial.com.au. 

But the City of Melbourne refused the project, proposed for the site on the edge of the Melbourne CBD, last year.

Among its reasons, the city said, was that the plan failed to provide an appropriate response to neighbourhood character and building design, or its existing heritage context. It also contended that it did not minimise wind effects on the site and would result in “unreasonable” amenity impacts. 

The proposal drew 210 objections from the community.

The developer went back to the drawing board after appealing against the decision with the Victorian Civil and Administrative Tribunal. 

A compulsory conference in September 2025 led to amended plans by Plus Architecture being submitted.

The rework considerably cut back the project, which was initially conceived as a 29-storey development with 510 student beds across 450 rooms.

▲ The rendering of the previous plans for 21-25 Bouverie Street that rose to 29 storeys.

Under the new scheme, the developer proposed a 17-storey tower of 324 beds across 300 rooms. The scheme is markedly lower than the 72-storey former Carlton United Breweries that neighbours the site.

The amended plans also replaced a proposed retail component—a convenience store and cafe—with communal areas of 641 square metres.

While there are no carparking provisions, 62 bicycle parking spaces are proposed.

After the rework, the city advised VCAT that it was supportive of the application. 

The last sticking point was the site’s existing heritage element.

The site is home to the former 1928-built Modern Printing Company Warehouse, a three-storey brick inter-war warehouse, which was extended at the rear in 1941.

▲ The site SP Setia acquired on nearby Bouverie Street last year.

The amended plans include the demolition of the 1941 extension, replacing it with a four-storey podium. 

VCAT ruled that while complete demolition of significant heritage items was usually discouraged, partial demolition was not totally prohibited under applicable heritage overlay schemes. 

In fact, it said, the proposed demolition would help contribute to the long-term conservation of the heritage, given the original 1928 building was retained. 

The tribunal set aside the decision of the city and granted Panorama Investment a permit for the development. 

Nearby, at 46-78 Bouverie Street, Malaysia-based developer SP Setia paid $114 million for a 6561sq m site in what was labelled the largest development site transaction in the area for a decade.

The site has a permit for a development including retail, residential and purpose-built student accommodation.

The student accommodation boom continues in major university cities including Melbourne. Across Australia, just 6 per cent of students can access PBSA, creating a shortfall of 10,000 beds in Melbourne and 25,000 beds in Sydney, according to CBRE.