Any views pls?
Can the City Council oppose and reverse the earlier approval by the Planning Minister?
Tks.
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Skyscraper faces tall order over Melbourne City Council's shadowing decree on special seven
July 31, 2014
A 77-storey silver skyscraper planned for Carlton is likely to be opposed by Melbourne City Council because of a little-known decree in its planning scheme.
There are seven public spaces in the city considered to be so special that they cannot be overshadowed by new high-rises.
They are the north bank of the Yarra River, Federation Square, City Square, Queensbridge Square, St Paul’s square and the State Library of Victoria forecourt. The south bank of the Yarra is also is also specially named in the planning scheme as being protected from overshadowing from the CBD and Docklands.
Next week one of these rules will come into play when the city council considers whether to support the construction of a 236-metre high-rise on the corner of Victoria and Bouverie streets, former home of the Carlton and United Breweries.
The tower would overshadow the state library forecourt, located about half a kilometer away. According to council’s 3D computer modelling the first shadow would creep into the square at exactly 1.56pm on June 22.
Council planning staff say this is an instant deal breaker.
“Notwithstanding the many other merits of this proposal, the development cannot be supported in its current form on that basis of this issue alone,” they wrote in a report submitted to councilors.
“In addition to the shadowing of the state library forecourt, the proposed tower will also cast shadows on Victoria Street, Swanston Street and Elizabeth Street to La Trobe Street.”
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For investors to decide impact on CES. Councils are a pain when developing in Australian CBD and any scale down or delay of the project would probably see CEL having to make a hard decision whether to cancel the project. Part of CES high gearing, there should be a big proportion of the current loans that were for the construction of the project this year. Every month of delay would be a cost in terms of interest expense since only 10% deposit is paid for OTP purchase in AU.
Fundamentals wise I still think CES has good fundamentals. But this big project with potential to cancel may overshadow profits from other local projects. There is a very big potential for the stock to gap down quite a bit if TM is cancelled.
But just like shipping and commodities, I am just not bullish on the property market at the moment, at least not until the Chinese bubble pops properly.
Be careful when you read the story. The 77-storey tower planned for Carlton is NOT Tower Melbourne.
Tower Melbourne's (71-storey tower) issue is demolition which seems to be delayed due to litigation with the Chow family but the company is confident that it can be completed by 2018.
The new tower at Carlton and United Breweries site is planned for more than 1000 apartment units and certainly a big profit potential for CES. If it is not approved because it overshadows the other buildings, then I think they can change the design instead of cancelling the project. Anyway, it won't be launched anytime soon so this shouldn't be a big concern.
Anyway Summer has not factored in the potential profit from this project as well as TM project.
For me, I would factor in TM project in my calculation because it is quite clear to me that it will be built, just the matter of when. However I wouldn't factor in the Carlton site because I'm not sure how well Melbourne city can absorb the upcoming supply of city homes. So this news / rumor won't be a big concern to me even if it is true.
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