Scape Group’s proposal to change use for student accommodation met with strong opposition

A development application for controversial changes to several student accommodation towers in Brisbane’s inner-south has been met with outrage.

A property giant has submitted an application to make controversial changes to a $102 million student accommodation development in Brisbane’s inner-south.

The Scape Group applied to the Brisbane City Council in April to make three of their six residential towers, boasting more than 1300 units, available for non-students as they attempt to recover from a dramatic downfall after the COVID pandemic.

The application, which is currently being assessed by council, would apply for Scape’s Vulture St and Merivale St locations in South Brisbane as well as their Atira building at Regent St, Woolloongabba.

Scape student living accommodation at Vulture St, South Brisbane.

The changes, which would only be used for a portion of each location, would apply until February 2023 if approved.

Scape’s Vulture St location features two-towers and 787-studios, was completed in 2018 and is believed to have cost up to $102 million.

Atira Regent St was finished in 2017 and features more than 400-units while Atira Merivale St, which includes more than 600-unites, is the latest development after it opened in 2019.

“The Other change applications have been lodged in direct response to the COVID-19 pandemic, where occupancy rates in the Brisbane assets has dropped from 75 per cent prior to COVID-19 (December 2019), to a current occupancy rate of 28 per cent,” Scape Principal and Chairman, Craig Carracher, said.

Craig Carracher is the executive director of Scape student living.

“The other change applications only affect three of the six Brisbane buildings, and only a portion of each of these three buildings is proposed to be used for the wider rooming accommodation use for a temporary period.

“The other change applications will also be able to extend our use to ensure graduates, and our residents are not displaced after completing their degrees, supporting their transition from student life into working life.”

Atira student living at Merivale St, South Brisbane.

But the proposal has sparked fierce opposition, not only from some locals with 25 submissions against the application, but also from Councillor for The Gabba, Jonathan Sri (Greens).

Cr Sri claimed it was a “classic example” of big companies wanting to bend the rules to maximise profits.

“I understand Scape benefited from a range of planning code exemptions, incentives and infrastructure charge discounts, specifically on the basis that it was proposing to build affordable student accommodation.,” he said.

Cr Jonathan Sri (The Gabba, Green) seen at a Brisbane City Council meeting. (News Corp/Attila Csaszar)

“Over the past few years, Scape has routinely exploited and price-gouged vulnerable international students, routinely charging rents of $400 per week for cramped, poorly-designed apartments that are only 15 sqm or 16 sqm in total.

“Now they’re seeking changes to their development approval, claiming that demand for student housing has dropped.

“But actually there are still plenty of domestic students who would love to live in the inner-city, they just can’t afford Scape’s obscenely high rents.

“If Scape is having trouble attracting tenants, it should drop its rent.

“If it wants to convert the student accommodation approval so it can target wealthier non-student tenants, it should pay back the $12 million discount Graham Quirk gave it on its infrastructure charges.”

Atira student accommodation at Regent St, Woolloongabba.

But those claims were strongly objected by Mr Carracher, who said he defended their pricing and support packages for all students.

“Scape did receive some limited infrastructure support but despite buildings being empty is still charged full land tax, utilities charges and is even charged a pedestal tax by the Brisbane City Council for every toilet in its buildings regardless of usage,” he said.

“With an average overhead of almost $1.5m per building per year just for holding costs it is necessary to seek an alternative use of the rooms while the buildings are empty.”

Brisbane City Council Planning Chair Councillor Krista Adams said the application was lodged as part of Scape Group Australia’s short-term plan to manage the impacts of COVID-19 on their businesses, which was largely international students.

“Council is always happy to try and support businesses that are working to adapt to the changing world post-COVID,” she said.

Cr Krista Adams. (News Corp/Attila Csaszar)

“The application remains under assessment, with independent planning officers working to reach an outcome as soon as possible.

“Greens Councillor Jonathan Sri has no idea how to run a city and telling businesses to slash their rent rather than adapt to COVID-19 is illogical.

“While the Greens are spreading extreme and economically crippling views, the Schrinner Council is helping businesses recover from the global coronavirus pandemic.

“Cr Sri’s calls for the owner to pay extra infrastructure charges is senseless as the proposal is for a temporary change of use for two-years only, before reverting back to their original use of student accommodation.”