Dual towers set to transform dilapidated Austral Otis building on Kings Way in Southbank

A new hotel, restaurant, bar and build-to-rent apartments housed in soaring twin towers aim to rejuvenate the dilapidated but heritage-listed Austral Otis building on Kings Way in Southbank.

A new Melbourne hotel, restaurant, bar and build-to-rent apartments would transform the site of one of the city’s biggest eyesores under plans being considered for state government fast tracking.

Developers want to amend previously approved plans for a prominent Southbank site to build a bigger, taller and more diverse twin tower complex above a heritage protected building.

If approved, hundreds of apartments built specifically for renters would form a key part of revamping the 1888 era former Austral Otis engineering works building in Kings Way.

The new plans would also create offices above the building previously also known as Regent House, and increase dual towers on the site from 144.5m to 155.2m and 80m to 82.6m high.

The twin towers would sit above a 29.9m high podium, 6m higher than previously approved, which would house 219 sqm of offices at level five.

An artist's impression of the dual towers proposed for 63-83 Kings Way in Southbank. Picture: Supplied

A report to government said the amended plans were due to an “increase in demand for build-to-rent accommodation within immediate proximity to Melbourne’s central city and specific requirements of the hotel operator”.

“The design will continue to complement the historic and contemporary characteristics of the area, adding to the high-quality architecture for which Melbourne is renowned,” the report said.

A permit for development of the land, part demolition and construction of a mixed-use multistorey building was issued for the site between Kingsway and the Westgate Freeway in 2011 and amended in 2020.

An increase in apartments from 328 to 445 apartments and reduction in hotel rooms from 350 to 346 has been sought for the land at 63-83 Kings Way and 127-129 Kavanagh St is now being sought.

The hotel, restaurant and bar would be built in the tallest tower, apartments split between the two buildings, total floor space increased by 1,351 sqm and car parks reduced from 173 to 96.

“The inclusion of high-quality build-to-rent apartments will fulfil an identified need in this part of the city, as well as create job opportunities and support the growth of the Melbourne economy,’’ the report said.

The site currently houses one of Melbourne’s biggest eyesores. Picture: Supplied

The proposed development would keep the facade of the Austral Otis building. Picture: Supplied

The proposal would “contribute to diversity within the area, while providing working, living, and short stay accommodation in environments that are safe and accessible”.

“The amended development continues to be of high-quality design, creating something uniquely different within the city skyline, enhancing the character of the area and positively contributing to the appeal of the public realm,” it said.

The hotel entrance lobby would front Kavanagh St, with a lounge and “signature bar” on the corner of Kavanagh and Hannah streets.

“The proposal incorporates active uses, including all day dining, a signature restaurant, office space, communal terrace and gymnasium and large apartments with functional balcony spaces

across the podium levels,’’ it said.

The former Austral Otis facade would be restored to its original condition, “allowing for the public, tourists and residents to gain an appreciation for Southbank’s architectural history.’’

The revised design draws inspiration from architecture of the nearby heritage-listed Boyd

Community Hub, opened in 1885.