The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
25
print
Print
OtherTed TabetFri 23 Aug 19

Crown Buys Out Schiavello at One Queensbridge

b5347c7a-8794-46a0-81f5-d61dae8554b3

Australia's biggest casino operator Crown Resorts looks set to pay $80 million to buy out property developer Schiavello Group’s half stake in the abandoned One Queensbridge project.

Plans to build the nation's tallest tower, a $1.75 billion hotel and apartment complex opposite the casino in Melbourne, has sat in limbo after Crown failed to secure finance ahead of a key planning deadline earlier this year.

The casino operator now hopes the site could accommodate a fourth hotel once it has taken full control of the stalled ­project, deliver “significant economic and tourism benefits to Victoria”.

The deal will also include all pre-development assets, including all intellectual property and designs for the project.

▲ A key feature is the pedestrian footbridge linking the new tower hotel with the Crown Casino itself. Image: Wilkinson Eyre


The Crown project, designed by London-based architects Wilkinson Eyre, has been mired in controversy from the start.

The state government had approved the tower two years ago under the condition construction started in March of this year on the proposal that included a six-star hotel of 388 rooms and 708 apartments.

Approval for the 90-storey Southbank tower which includes a pedestrian bridge connecting the new hotel to the Crown Casino complex, took less than a year.

The building also holds a plot ratio of 56:1, with the 200,000sq m tower having more than three times the density under the maximum allowable plot ratio of 18:1 a measure that was emplaced by Victorian planning minster Richard Wynne to prevent “inappropriate development”.

The 90-level tower will rise to 323 metres, eclipsing the Australia 108-apartment tower at 319 metres that is under construction nearby. It will also pip the Q1 tower on the Gold Coast, which measures 322 metres, courtesy of a spire atop its roof.

“The transaction remains subject to long-form agreements between Crown and the Schiavello Group,” Crown advised.

Related: Star Entertainment Group Profit Falls Amid VIP Downturn

▲ Crown Resorts has endured a difficult few weeks with allegations about gaps in the company’s governance, regulatory and compliance systems exposed. Image: Bloomberg


Crown profit slumps 28pc as VIPs cash out

Crown, the casino operator backed by billionaire James Packer, posted a 28 per cent decline to $401.8 million in full year profit as foreign gamblers retreated from the tables and slots.

The casino operator saw its normalised results for the year, which strip out the variance in VIP gambler win rates, down 4.7 per cent to $368.6 million.

The drop in normalised earnings hit the group's key properties with Crown Melbourne down 8.6 per cent to $589.5 million, Crown Perth down 10.8 per cent to $221.8 million and Crown Aspinalls in London down 46.5 per cent to $6.4 million.

Crown's net profit dived to $401.8 million over the year, with revenue from foreign VIP gamblers retreating by 26.1 per cent to $38 billion.

“Crown’s Australian operations’ full year result reflected subdued market conditions”, Crown Resorts executive chairman John Alexander said.

Crown shares have fallen about 10 per cent in the three weeks since the company's dealings with its junket partners was exposed and multiple state and federal inquiries into the matter were launched.

“Crown has zero tolerance for criminal elements and we view these inquiries as an opportunity to continue our cooperation with regulators and other agencies,” Alexander said.

Rival operator Star Entertainment, which has casinos in Sydney, Brisbane and the Gold Coast, last week reported a 35 per cent fall in VIP turnover.

OtherHotelAustraliaMelbourneFinanceOther
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
View All >
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
Hotel

Perth Hotel New Role Revealed After $105m Sale

Lindsay Saunders
The WA government’s acquisition is to become a part of its bid to improve housing supply in the capital...
LATEST
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
3 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Hotel

Perth Hotel New Role Revealed After $105m Sale

Lindsay Saunders
2 Min
Third.i Crows Nest Dolls House render EDM
Build-to-Rent

Thirdi Scraps Office Tower for Crows Nest Over-Station Site

Vanessa Croll
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/crown-buys-out-schiavello-at-one-queensbridge-