STH BNK site heads to market in major blow for Beulah’s stalled Southbank supertower

The long-expected move to take Beulah’s stalled STH BNK by Beulah site to market has now been confirmed, marking another major turn in the troubled saga of what was once pitched as Australia’s tallest building.

The twin-site Southbank holding at 118-164 City Rd, planned for the $2.7 billion STH BNK project, is now being offered through a receivership campaign, in a significant sign of the scale of the challenges facing the development.

In a statement, a Beulah spokesperson confirmed that receivers had been appointed to two Southbank sites late last year.

“Since then, we have been progressing a range of parallel strategies, including refinancing the sites and engaging with potential joint venture partners, with a potential sale process forming part of these considerations,” the spokesperson said.

“We are continuing to work constructively with all relevant parties to achieve a refinancing outcome and progress a resolution.”

“The current campaign does not preclude the project proceeding, and presents an opportunity for an incoming party to realise the site’s development potential.”

The company said rising construction costs continued to weigh heavily on the project, a problem affecting many major developments across Melbourne.

Like many projects across the market, rising construction costs continue to present challenges; however, we remain focused on working with stakeholders to deliver a positive outcome for all involved, the spokesperson said.

The site’s return to the market is a major moment for Southbank.

Since its unveiling in 2018, STH BNK by Beulah had been one of Melbourne’s most ambitious and closely watched projects. Designed by UNStudio and Cox Architecture, the proposal featured twin towers, including a sculptural “Green Spine” tower rising to 366 metres, with apartments, hotel, retail, office and public uses all promised for the former BMW site.

But despite years of marketing, strong presales and international attention, the project has never progressed beyond the planning and sales stage.

As previously reported by Southbank News, concerns had already been growing among purchasers, some of whom signed contracts as far back as 2022 and have since found themselves waiting in limbo with substantial deposits tied up while construction remained uncertain.

In February 2025, the project’s management entity, BSSPV Pty Ltd, was placed into voluntary administration. Since then, Beulah had maintained that it was pursuing alternative pathways to deliver the scheme, including discussions with a potential development partner.

The latest move suggests those efforts have not yet resolved the core feasibility issues.

Public marketing of the receivership campaign is now under way, with expressions of interest expected to close in coming weeks. The sale is being handled by Cushman & Wakefield and Stonebridge Property Group, with the site being pitched as a major mixed-use development opportunity in central Southbank. The campaign is understood to allow for a range of possible outcomes, including residential, build-to-rent, hotel or commercial uses, and potentially the sale of the two sites separately.

For Melbourne, the listing is both disappointing and revealing.

It underlines the immense pressures now confronting large-scale apartment projects, particularly those with complex designs, high construction costs and long lead times. And for Southbank, it means one of its most prominent empty sites remains unresolved, at least for now. •