Revealed: State Government helps push button on second Marine Quarter residential tower

Developers have pushed the button on a major under-threat project plagued by soaring costs and a builder collapse, crediting its success to a multimillion-dollar government fund.

Developers have pushed the button on a major under-threat project plagued by soaring costs and a builder collapse, crediting its success to a multimillion-dollar government fund.

Marine Quarter’s first residential tower is being finished at 165 Marine Parade, Southport, at the northern end of the Broadwater Parklands.

Its developer says the government’s $350m Incentivising Infill Development Fund (IIDF) - aimed to support the delivery of more diverse, affordable, and well-located homes faster - has helped green light the entire project.

Marine Quarter developer Melbourne’s Buildcap said its application had been assessed as eligible by the state and it would now enter into a formal funding agreement.

A second tower as part of the Marine Quarter project in Southport has been greenlit after support from the State Government through a development fund supported by Housing Minister Meaghan Scanlon.

Buildcap’s Ingrid Davoli said that the state’s decision would ease the burden of more than $4m payable in City of Gold Coast infrastructure charges on Tower 2.

“By covering these council charges, the state has given us the confidence to proceed with Tower 2, protecting the purchase contracts of all those who invested in the project’s second stage,” she said.

“There’s been a lot talk about developers sunsetting contracts, as builders fail and the cost of construction soars. The existence of this fund and our successful application avoids these kinds of catastrophic consequences.”

Ms Davoli said Marine Quarter had hit a brick wall of unforeseen circumstances including the collapse of its builder, GCB Constructions, along with a $20m increase in construction and bank holding costs.

“Tower 2 was therefore on hold until the results of this fund application.

The Marine Quarter tower being built in Southport.

“We’re delighted it will now proceed, with the support of the government coupled with our Financier RMBL and builder Sunbuilt,” she said.

Tower 2 is set to cost more than $70m to build and employ up to 1000 workers. It will provide housing for 424 people across 157 apartments.

Current builder Groupline are working to successfully complete Tower 1 to allow Buildcap to settle its 105 apartments, expected before the end of the year.

Ms Davoli said that Buildcap’s goal remained getting its customers in their homes before Christmas.

The Marine Quarter twin tower development at Southport.

Housing Minister and Gaven MP Meaghan Scanlon said the building industry had told the government that they could help build homes faster with extra support.

“So that’s what we’ve done. Gold Coasters are seeing us do what matters – building the homes we need, faster - while the LNP continue to rail against homes being built in their own backyards,” she said.

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Originally published as Revealed: State Government helps push button on second Marine Quarter residential tower