FEC shrugs off market worries over Bourke Street tower

Far East Consortium will push ahead with the construction of its 850-apartment tower on Melbourne's Bourke Street by mid-2021, even if it has to rely on the balance sheet of its Hong Kong parent to do so in a weakened sales environment.

The local arm of the Hong Kong-listed FEC expects to start marketing apartments in its $650-million redevelopment of the historic Eliza Tinsley Building in August or September, and will go ahead with work on site as required by the building permit, a spokeswoman said on Monday.

"We're in a unique position to a lot of people," the spokeswoman said. "If we had to start within certain time frame then we’ll have to do that and can do that. Otherwise we wouldn’t have bought the site."

The project on the 640 Bourke Street site that FEC acquired last year for $90 million was one of eight that Victorian Planning Minister Richard Wynne approved on Monday, either for the first time or, in the case of the FEC project, gave the tick to crucial amendments to schemes already allowed.

The projects given the nod on Monday, collectively worth an estimated $2.5 billion in end value, marked the southern state's latest bid to stimulate the faltering state economy with shovel-ready projects. A week ago it laid out a spending plan that included $1.2 billion on schools, and a month ago it gave the green light to a handful of commercial projects that included the country's tallest residential tower.

"As the industry deals with the unprecedented challenges of the pandemic, we’re making sure priority projects are delivered more efficiently and fast-tracked where appropriate,” Mr Wynne said.

Some of the projects approved on Monday had a familiar ring to them.

Charter Hall's $290 million Lonsdale Street development, approved early in 2018 as a standard office tower, required a planning amendment for modifications to suit the needs of its anchor tenant, the Australian Federal Police, and to create a new laneway connecting Lonsdale and Little Lonsdale streets.

Preliminary site works have already started at 140 Lonsdale Street and practical completion is due in October 2022, Charter Hall said.

Riverlee's $500 million Northbank project at 731-739 Flinders Street in Docklands, given approval in 2018 for a hotel and residential component, has been awaiting a further planning amendment and was one of the projects Mr Wynne gave a green light on Monday.

A project that has already started construction received an amendment as well. China-backed developer Poly's 1000 La Trobe Street, work on which began in July last year, received the necessary green light to change its internal layout, facade and to include a childcare centre and gym.