Southbank site offers second chance to build Melbourne's tallest tower
A Southbank development site with the capacity to deliver Melbourne’s tallest tower has been brought to market. The dual-title holding at 118-158 City Road is being offered for sale via receivers, marking a reset for a project that once stood among the most ambitious in the country.
Occupying a former BMW showroom site, the combined 7706-square-metre plot has 407 metres of frontage and carries planning precedent for a super-tall development of up to 789 apartments, placing it in a position to eclipse Australia 108 and Eureka Tower.
The site was previously earmarked for the $2.7 billion STH BNK project from Malaysian-backed developer Beulah International. However, momentum behind the project stalled last year as financial pressures mounted.
In early 2025, the project company behind the development, SPV, was placed into administration following legal action from design consultants, including Cox Architecture and UNStudio. The entity was understood to be carrying liabilities of over $100 million, prompting creditors to vote in favour of a sale campaign in a bid to recover outstanding funds.
Now, the site has been handed over to Cushman & Wakefield, along with Stonebridge Property Group, to find a new buyer.
While a price has not been disclosed, Daniel Wolman of Cushman & Wakefield says the scale and flexibility of the land is expected to appeal to a broad global buyer pool, attracting both domestic and offshore capital.
“We expect strong interest from institutional investors, offshore developers and syndicates targeting rare island sites capable of delivering landmark outcomes, particularly those with the flexibility to support multiple uses and adapt to evolving demand across residential and living sectors,” he says.
The zoning supports a mix of uses, including residential, build-to-rent, hotel and commercial uses.
The existing buildings on the two titles provide holding income, enabling a staged approach to redevelopment.
Located within Southbank’s cultural and entertainment precinct, the site sits moments from the Crown casino and the expanding arts corridor, which includes the $1.7 billion transformation of the Melbourne Arts Precinct backed by the Victorian Government.
Julian White of Stonebridge Property Group says the site’s positioning and planning framework elevate it beyond a typical development offering.
“What sets this opportunity apart is the combination of scale, frontage and planning precedent,” he says. “It’s a true city-shaping site with the capacity to deliver a defining project within one of Melbourne’s most successful development precincts.”
