New future looms for Queensbridge site as Crown Resorts sells to PDG

Crown Resorts’ Southbank clean-out continues following the sale of its flagship development site at 1-7 Queensbridge St, which is understood to have been purchased by prominent local developer PDG.

The casino group’s US-based private equity owner Blackstone sold the site for $85 million in August, according to recent filings with the Australian Securities and Investments Commission (ASIC). 

It marks a new chapter for the site which has sat dormant since Crown and its former development partner Schiavello were controversially granted a “state significant” approval by the state government for its One Queensbridge proposal in 2017. 

Those plans, which never went ahead after Crown and Schiavello failed to commence construction within two years of receiving its permit, would have seen the construction of Australia’s tallest tower, complete with apartments, offices and a hotel. 

The government at the time led by former Premier Dan Andrews issued the permit on the proviso that a $100 million “public benefits package” was delivered, which included upgrades to Southbank Promenade, Queensbridge Square and Sandridge Bridge. 

With the site having been the subject of evolving development proposals dating back to 2011, the City of Melbourne, the local community and nearby residents at neighbouring Freshwater Place have remained in limbo for nearly 15 years.

The site is also home to the historic former Queen’s Bridge Hotel, which received a heritage overlay protection in 2020 following a decision by a state planning panel despite Crown arguing that doing so could “undermine legitimate development opportunities”. 

But even though Crown bought out Schiavello’s 50 per cent stake in the site following the collapse of its One Queensbridge plans, the current buildings have remained abandoned and plagued with damage and graffiti. 

It’s understood that the sale is part of an ongoing strategic effort by Blackstone to reverse its struggling investment in Crown, which also follows its decision last year to list two other sites at 284-290 City Rd and 93-103 Clarendon St in Southbank. 

Crown also recently sold its 20 per cent stake in restaurant group Nobu and it is understood Blackstone is considering offloading a series of other assets in a bid to find savings. 

Former Crown shareholder Stephen Mayne said, “[the sale of the One Queensbridge site] is just a further sign that they’re in shrinking mode, just trying to keep the banks from the doors.”

“They’ve struggled to pay their banks back so there’s no way they’re going to have expansion plans such as building another hotel,” he said.

Southbank News contacted Blackstone for comment. 

Since purchasing Crown Resorts for AU$8.9 billion in 2022, Blackstone has focused on liquidating non-core assets to improve the company’s overall financial standing following a series of controversies and a Royal Commission in Victoria in 2021.  

The group reportedly injected nearly AU$500 million into Crown Resorts in 2023 after it received significant penalties for breaking anti-money laundering and counter-terrorism financing laws. 

But with 1-7 Queensbridge St now in the hands of a new developer, Freshwater Place owners’ corporation chair Peter Renner said residents would like to understand what is being planned for the site. 

Mr Renner said that previous plans had failed to consider the proximity of the proposed building’s location to the western side of Freshwater Place, which sits immediately adjacent to the Queensbridge St site. 

“They had allowed the building to be face to face with Freshwater Place at a distance of seven to eight metres,” Mr Renner said, adding that this would have blocked Freshwater Place apartments’ access to sunlight, and reduced their privacy. 

Mr Renner said he hoped the site’s new owner, understood to be developer PDG, which is responsible for neighbouring Queensbridge St tower Prima Pearl and the local Boyd Village development, would consider Freshwater Place’s liveability as part of its plans. 

Southbank News contacted PDG for comment. 

Southbank Residents Association president Tony Penna said development of the site was long overdue. 

“We’re looking forward to that site being developed, but we need to make sure that the developer is going to respect the heritage of the Queen’s Bridge Hotel,” he said.

“The separation from Freshwater Place also needs to be respected.” •