Crown Resort's $2 billion tower One Queensbridge in planning limbo

Crown Resort’s plan to build a new $2 billion hotel and luxury apartment tower in Melbourne are in limbo after the Victorian government turned down its request to extend construction permission.

Crown, backed by billionaire James Packer, this morning said it had been denied an extension to the construction start time of the planned One Queensbridge hotel and apartment complex opposite the Crown Towers hotel on Southbank.

The state government approved the 90-storey tower two years ago under the condition construction started by this month.

Crown and joint-venture partner Schiavello Group applied for a planning extension two weeks ago while they continued to seek financing.

“Crown and Schiavello have been informally notified by the Victorian government that an extension to the construction commencement date for the proposed One Queensbridge project has been denied,” Crown said in a statement to the ASX.

“No formal notice has been received from the Victorian Government but it is expected shortly. As previously announced, the project was subject to obtaining financing arrangements that were satisfactory to Crown and Schiavello. Unfortunately these arrangements could not be achieved before the construction commencement date under the planning approval.

“Crown retains a 50% ownership interest in the land and will consider the next steps for the property in conjunction with Schiavello.”

Plans for One Queensbridge include a 388-room hotel and 708 residential apartments and a walking bridge linking it to the casino across the street.

The developers had previously said that the project was “subject to obtaining financing arrangements”.

“Unfortunately these arrangements could not be achieved before the construction commencement date under the planning approval,” Crown said.