Blistering SRL costs blown out further due to tunnelling and planning bungle

The SRL project, already costing $34.5bn, has been forced to acquire new land due to protect its tunnel route.

The $34.5 billion Suburban Rail Loop East has been forced to acquire land under new high rises to protect its tunnel route Picture: David Caird

The $34.5 billion Suburban Rail Loop East has been forced to acquire land under new high rises to protect its tunnel route, adding pressure to its bulging budget.

Builders had started to drill foundations for the twin high rises in Highett, across the road from a planned Cheltenham station for the rail loop, earlier this year.

Concerns about the depth of the foundations and car parks, and whether this could impact the tunnel infrastructure, led to the SRL Authority stepping in and acquiring a portion of the Nepean Hwy site.

Concept design of SRL Cheltenham. Picture: Supplied

The planning shemozzle was revealed by the Herald Sun in August, following months of negotiations between developers and the SRL to redesign the two towers, which are up to 13 storeys tall and would deliver 217 apartments to Melbourne’s southeast.

The housing towers were first green lit eight years ago, well before the SRL was announced by former premier Daniel Andrews on the eve of the 2018 state election.

An SRL spokesperson would not disclose the figure paid for the underground land due to commercial confidentiality, but said it was the only case of an underground acquisition related to the loop and was “included in the overall SRL East budget.

“We will continue to work with the developer to ensure its building can deliver more homes near the new Suburban Rail Loop station at Cheltenham.

“SRL is more than a transport project, the first section will deliver an additional 70,000 homes closer to jobs, education and services across Melbourne’s east and south east suburbs.”

Southpoint in Highett Melbourne in under threat from the Suburban Rail Loop. Picture: Supplied

Major construction for the SRL East is set to begin in 2026, and would build a 26km tunnel between Cheltenham and Box Hill, with six underground stations and a train stabling yard.

Land around those six stations would be rezoned to encourage major growth, including suburban skyscrapers up to 40-storeys in some areas.

The developer of Southpoint, H1Land, did not respond to questions, but has previously told the Herald Sun it was unable to speak due to a nondisclosure agreement with the SRL Authority.

It is understood discussions between H1Land and the SRL Authority are continuing, despite no breakthrough in almost two years.

Originally published as Blistering SRL costs blown out further due to tunnelling and planning bungle