Melbourne developer Holder East has re-submitted plans for a five-storey mixed-use block west of the city, saying the current market will not support the already approved office use.
The amendments before Melbourne City Council seek to remove 3223sq m of office space from the first and second floors, replacing it with retail, recreation, and food and drink.
Town planners Urbis, who lodged the amendment request, said the approved mix of uses no longer suited demand.
“As the proposal has progressed towards construction, and the requirements of potential tenants have been more deeply understood,” Urbis wrote, “it has become apparent that the originally approved mix of uses will not best suit the current market conditions and tenant demands.”
The office sector generally, and office vacancy rates in Melbourne specifically, have struggled to recover after the pandemic, with supply often outstripping demand.
The Future Melbourne Committee approved the Hayball Architects-designed tower on the 2000-square-metre site at 501-527 King Street, West Melbourne, in November last year.
While the net floor area will increase by 807sq m to 11,275sq m, the $40 million development will remain at five storeys with two basement parking levels for 77 vehicles.
However, a central void and mezzanine floor—which was to have catered to a recreation facility—will now be replaced with retail food and drink tenancies. The area will be enclosed, and because of that, a central staircase removed from the amended plans.
Urbis said separate tenancies on the mezzanine level would now be consolidated into a single area, “due to a prospective tenant’s requirements”.
“The change represents an improved urban design outcome over what was previously submitted and has no impact on the appearance of the building,” Urbis said.
“This change also results in a negligible increase to internal floor area.
“The proposal retains employment-generation uses and contributes to the genuine mix of uses within the West Melbourne Structure Plan area…”
Holder East previously submitted a version of the plans with an eight-storey building, revising it to the current five-storey building after community objections.
Originally backed with capital from China and Hong Kong, Holder East, led by managing director Thomas Lu and chief operating officer CJ Wu, now runs a Melbourne-based operation with investments in restaurants, convenience stores and hotels.
Most recently, Holder East partnered with international hotel giant Hyatt, which plans a Hyatt House Hotel in the developer’s under-construction luxury apartment tower in South Melbourne.
The hotel, which is expected to open in 2025, will be a part of Holder East’s Oasis Residences—a 19-storey residential apartment tower, including the hotel’s 97 serviced apartments.
The developer’s King Street amendments are currently on public exhibition.
