Cairns: Nova City development dead as Aspial’s World Class Global cancels $550m tower project
A pressing question has hit the city’s lips after the $550m Nova City mega development finally collapsed seven years after it was announced.
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A PRESSING question has hit the city’s lips after the $550m Nova City mega development finally collapsed seven years after it was announced.
What comes next?
It rocketed onto the scene with a bang but has ended in a whimper with developer World Class Global (WCG) writing to pre-sale buyers to say their new apartments would not be built.
The seven-tower project, with structures ranging from 17 to 20 storeys, is now on the scrap heap alongside some of the city’s most feted developments that did not pan out.
In a case of deja vu for many Cairns residents, the company blamed Covid-19 for the project’s failure.
“We embarked on Nova City many years ago with a vision to set a new benchmark for residential living in Cairns,” WCG said in the buyer statement.
“Our intention has always been to raise the bar and deliver a high quality project that Cairns could be very proud of.
“The Covid-19 pandemic has impacted many facets of development, driving up material costs and impacting both timelines and budgets.
“All these unfortunately have profound implications on the development of Nova City.
“After much careful deliberation, we must painfully acknowledge that our original vision is no longer feasible at this current point in time.
“We understand that this will be disappointing news.”
The project is in good company with the billion-dollar global tourism hub development next to the Cairns Reef Casino also declared dead in the water last year.
The State Government blamed the pandemic for that project’s demise as well, although it looked doomed long before Covid-19 entered the public consciousness.
The proposed $8.15bn Aquis Great Barrier Reef Resort planned for Yorkeys Knob was another spectacular failure.
Industry sources say the billionaire businessman behind WCG and its parent company Aspial, Koh Wee Seng, will likely try to sell the 2.4ha property – and is equally likely to take a significant loss.
He paid about $18m for the 2.4ha lion’s share of the site but later also bought an $8.05m neighbouring block from Cairns Regional Council for land banking purposes.
It was a huge tract with steep prices in an area many considered less appealing than prime blocks later bought by Crystalbrook Collection hotel developer Ghassan Aboud.
Nonetheless, Mr Wee Seng needed space to realise his vision of building a city within a city – and he had a circle of advisers and consultants helping prosecute that cause.
The apartments were smaller than Cairns was used to, but Mr Wee Seng was hoping to appeal to international university students among the prestige buyers.
There was also talk for a time about CQUniversity setting up a campus.
It is unknown how many units were pre-sold – although the firm was touting $1.9m apartment sales off the plan as far back as October 2016 – or how those buyers will be reimbursed.
In the end, all it amounted to was underground infrastructure paid for by ratepayers, some foundation work and a showroom on what remains a gargantuan blank slate on the CBD fringe.
WCG has been asked for further comment about the next steps for the site, although it is understood no firm decisions have yet been made.
TIMELINE
July, 2014
Aspial Corporation lodges development application with Cairns Regional Council seeking approval for the first stage of its seven-tower project in CBD
September 2014
The council votes to sell off 17 Hartley St and 6 Kenny St to Aspial at a combined price of $8.05m. The Cairns Post understands the sale was approved despite opposition from council officers.
November 2014
Nova City gets its first approvals for six high-rise apartment towers, one high-rise commercial tower and associated developments.
January 2015
A request for a negotiated decision for the Nova City development is approved, including “consideration” for a reduction in mandatory on-street carparking. Clearing work for the towers project, named Nova 8, begins at Spence St property
October 2015
Nova City comes up for some changes to its approval, including expensive carparking relief. “The scale of the project and the involvement of overseas investment is acknowledged and council’s intent is to ensure the development proceeds as planned and that risk to council and the community is properly managed,” the rationale in the minutes states.
November 2015
Councillors overturn officers’ recommendation to reject a request to have approval conditions changed over the provision for carparking in the Nova City development.
August 2016
Nova 8 is rebranded as Nova City
October 2016
Luxury units in Nova City hit the market, as more ground works begin at the site, and display suite opens.
April 2017
Nova City holds an official launch with LDI Constructions winning the civil and foundation works contract. Starting the foundation work was a condition of the council granting the developer leeway on parking and underground infrastructure costs.
June 2017
A request for amended conditions on the Nova City development comes up for a decision in closed session. The matter is approved behind closed doors.
August 2017
CQUniversity reveals it is eyeing Nova City as a potential site for its expanded Cairns City campus
October 2017
Expressions of interest for builders released. In a separate project, the State Government announces a potential billion-dollar global tourism hub to be built on waterfront land beside the Cairns Reef Casino.
March 2018
Aspial subsidiary World Class Global announces construction to begin on Nova Light, a 17-storey, 187-apartment tower in April, 2018 for completion by mid-2020
July 2018
Nova City gets more development approvals.
July 2020
CQUniversity is no longer eyeing the Nova development for its new $50m CBD campus, instead shifting attention to a former post office site on the corner of Grafton and Hartley streets. The State Government also finally admits its billion-dollar global tourism plan is dead in the water, blaming Covid-19 despite the project failing to get off the ground years before the pandemic.
October 2021
Aspial property subsidiary World Class Global writes to early apartment buyers to say the project has been a casualty of Covid-19 and will no longer go ahead.
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Originally published as Cairns: Nova City development dead as Aspial’s World Class Global cancels $550m tower project
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