VCAT rejects proposal for apartment development on George St in Fitzroy

The property giant pushing to build the nation’s tallest tower has suffered another setback after plans to construct a luxury apartment complex in Melbourne’s north were shut down by VCAT.

The property giant pushing to build the nation’s tallest building has suffered another blow after plans to construct an apartment complex in Fitzroy were shut down.

The property giant pushing to build the tallest building in Australia has suffered another blow after plans to construct a luxury apartment complex in Melbourne’s north were shut down by the state’s tribunal.

The Malaysian-backed developer, Beulah, sold its shareholding in the eight-storey Fitzroy project at 430-434 George St to another international developer Leeka a few months ago, it can also be revealed.

It comes as Beulah, which is behind the landmark $2.7bn STH BNK project, set to become the nation’s tallest tower, called in administrators to its project manager earlier this year after it collapsed owing more than $100m.

Original plans for the Fitzroy project included 44 residences, two retail spaces at ground level, car share vehicles, EV charging stations, a bike hub with 49 bicycle spaces and a fern garden for residents, set across a 1200 sqm site.

Original plans for the Fitzroy project included 44 residences. Picture: Beulah

“These spaces are designed to seamlessly integrate with Fitzroy’s unique character, fostering a vibrant new community hub,” Beulah’s website states.

“Partnering with Australia’s most awarded sustainable architecture practice, Breathe Architecture, Beulah is bringing an innovative vision to this celebrated Melbourne neighbourhood, fusing heritage with state-of-the-art sustainable design.”

Beulah took Yarra City Council to the Victorian Civil and Administrative Tribunal after they refused to grant a planning permit for the site.

The developer submitted revised plans to the tribunal, which included removing one floor, comprising a seven-storey building with a two-level basement accommodating carparking, dwellings, a shop, and food and beverage premises.

Beulah sold its shareholding in the Fitzroy project to developer Leeka. Picture: Beulah

But the council rejected the proposal, saying it failed to provide an “appropriate and respectful response” to the adjacent heritage building at 436 George St, the residential development at 178 Rose St and the heritage streetscapes of George St and Rose St.

“(The development), if built, (would) markedly interrupt and dominate the surrounding dwellings and heritage streetscapes,” the council submitted.

A number of nearby residents and the Fitzroy Residents Association also opposed the development, raising concerns about carparking and traffic.

The tribunal ultimately agreed with the council and rejected Beulah’s proposal, calling the planned building “monumental and monolithic”.

“(The proposal) is of largely uniform colour, despite the amount of vegetation proposed on the facade,” the tribunal said when handing down its judgement last week.

“The (building) when viewed from the corner of Gore St and Rose St looking west is prominent and intrusive.

“Far from responding sympathetically and respectfully to the predominantly lower level and heritage surroundings, the overall presentation of the proposal is jarring.”

The adjacent heritage building at 436 George St. Picture: Google Images

The tribunal said the height of the street wall adjoining the single-storey heritage building at 436 George St was “in direct conflict with the Heritage Overlay”.

“This proposal, far from respecting 436 George Street, threatens to dominate and belittle it,” they said.

“This is not to say that the proposal does not have a considerable number of positive features in terms of the provision of increased housing, its materiality and the design and amenity of its apartments.

“The existence of the (state’s housing crisis) is a relevant consideration to be thrown in the balance to determine whether a proposal represents an acceptable outcome.

“However, it does not outweigh the negative considerations which we have described.”

Leeka director Raphael Yen told News Corp he was disappointed with the tribunal’s decision, particularly given the current housing challenges across the state.

“It is unfortunate that the tribunal decided not to grant a permit with conditions, opting instead for a full refusal,” he said.

Beulah is behind the landmark $2.7bn STH BNK project.

“We are now going back to the drawing board to explore ways to make this development work for both the community and the development group.

“At present, we are in discussions with our consultants to determine the best path forward for the site.

“We sincerely hope the community and council will work collaboratively with us to achieve a balanced outcome that benefits all parties.”

Leeka is behind other Melbourne projects including Comme on Commercial Rd in Prahran, Avoca on Avoca St in South Yarra, and Montana on Mountain Grove in Kew.

During Beulah’s ownership, no apartment sales were launched for the Fitzroy project.

Yarra City Council was contacted for comment.

The majority of the $100m collapse of the project manager of STH BNK by Beulah is owed to associated entities within the developer’s empire, but a number of local businesses also faced hefty losses with trade creditors totalling $5.3m.

The Southbank site has been put up for sale while creditors of the collapsed company agreed to settle for as little as a quarter of what they are owed.

It’s understood Beulah has since secured a two-year extension to the planning permit, which will now expire if works haven’t commenced by April 2027.

Originally published as VCAT rejects proposal for apartment development on George St in Fitzroy