State government to spend an extra $163m on Geelong convention centre project

The cost of Geelong’s long-awaited convention centre has ballooned, with a commercial office tower now included in plans.

An artist’s rendering of the Geelong Convention and Exhibition Centre. The precinct will have cost more than $700m when completed, including $423m from the state government and $250m in private investment from Plenary Conventions. Picture: Supplied

The cost of the Geelong convention centre precinct has ballooned, with the state government expected to fork out a further $163m for the project than initially anticipated.

The convention centre precinct was set to cost $294m in July, however it can be revealed the state government alone will now pour more than $400m into the project.

The state government was committed to spend $261m to build it when the name of the convention centre – Nyaal Banyul – was announced in August.

Its contribution of $423m is now almost as much as the entire $500m Geelong City Deal which the convention centre was set to be the centrepiece of.

Early constructions have started at the 1.6ha waterfront site on Western Beach Rd.

Construction work at convention centre site in November. Picture: Alison Wynd

Regional development minister Gayle Tierney revealed on Monday a deal had been signed with Plenary Conventions to get construction underway in earnest.

Ms Tierney said the project was the result of “years of advocacy” and would “positively impact generations to come”.

The Geelong Advertiser understands the initial estimate of state government funding was based on preliminary design works and industry engagement.

Since then, the government has consulted with the community and the sector, whose feedback was used to inform the design’s development.

It is understood the design has evolved to ensure the centre can attract the broadest range of events, and host them concurrently.

The plans now include a commercial office tower along with the previously announced convention and events centre, 200-room Crowne Plaza hotel, large public plaza and hospitality spaces.

The consortium behind the convention centre project, led by Plenary Conventions, also includes construction group Built, global architecture studio Woods Bagot, property management company BGIS and property group Quintessential Equity.

As part of the deal, Plenary Conventions will invest $120m into securing “Geelong’s largest hotel”, and the company has earmarked a further $130m to build a mixed-use development within the precinct in the future.

Geelong Convention and Exhibition Centre announcement in July. From left, Geelong mayor Trent Sullivan, Plenary Group Chairman John O’Rourke, Christine Couzens MP, former regional development minister Harriet Shing and Libby Coker MP. Picture: Brad Fleet

With government and private investment, the convention centre precinct will have cost more than $700m when completed, with the federal government chipping in $30m and the City of Greater Geelong $3m.

The project is expected to be completed in 2026 and will be one of the first major projects delivered under the 30-year Central Geelong Framework Plan, announced earlier this year.

According to the state government, more than 1400 jobs will be supported during construction of the convention centre precinct, and 700 new jobs will be created once it opens.

Geelong mayor Trent Sullivan said it was “exciting to see the project progressing to this next major milestone”.

Mr Sullivan said the public-private partnership model would deliver an “incredible facility” for the city.

The Geelong City Deal, an agreement between federal, state and local governments, was announced in 2018 as a $355m cash splash.

Projects in the initial package included the new Queenscliff ferry terminal which opened a year ago, Geelong streetscape upgrades and a new visitor centre in Glenample.

By 2019, the scheme was estimated to cost $370m and is now set to cost $500m.

Originally published as State government to spend an extra $163m on Geelong convention centre project