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Crown annual results released to the ASX 45 minutes ago.

All mention of 1 Queensbridge St has been expunged from both the Powerpoint presentation and the formal results, including the forward looking capital expenditure which extends to financial year 2023. The only reference anywhere is the word 'Queensbridge' in a footnote.

This does NOT mean that it will never get built. It does mean that there is nothing that can be said in a way that conforms with ASX continuous disclosure requirements.

Other interesting points:

1. 95% of employees were on jobkeeper but less now that Crown Perth is open
2. Crown has personally assisted 430 employees who have severe financial stress through a special fund funded by Crown themselves.
3. I have pasted a full summary of Crown Sydney in the relevant Sydney thread.
 

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Absolutely no chance of this being built, corona virus was the final nail in the coffin, tourism is dead for 2-3 years at least. :(
 
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Absolutely no chance of this being built, corona virus was the final nail in the coffin, tourism is dead for 2-3 years at least. :(
Assuming there will be a long delay for a return to 'normal' tourism for a number of years why not push ahead with large projects that take years to construct so they are completed when everyone will be looking to travel again.
If the world hasn't recovered to a reasonable level in the next 5 or 6 years...we're all stuffed huh...
 

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Assuming there will be a long delay for a return to 'normal' tourism for a number of years why not push ahead with large projects that take years to construct so they are completed when everyone will be looking to travel again.
If the world hasn't recovered to a reasonable level in the next 5 or 6 years...we're all stuffed huh...
Oh I agree with this, but that's not the problem, raising capital will be the issue, Crown would really have to push the envelope convincing investors that this would be a sound investment even if Crown had a 60% stake.
 

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Im with you Decatur Something will be built eventually but maybe not by Crown its way too an important site to be left sitting vacant for a long time.
 

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Mega tower projects need a champion of some sort to push a vision through. From my reading that was James Packer. He has now well and truly stepped away even trying to sell his portion of the business (I believe the sale fell through).

Green Spine on the other hand has Adelene Teh and Jiaheng Chan as ongoing proponents. I am a lot more confident about Green Spine, post pandemic, than I am about Crown tower.

Crown itself has also been a victim of bad decision making and circumstance. The business itself is stalled to a great extent during this pandemic.

I am not holding my breath here, and I suspect Crown itself does not know what the end game will be; stall, sell, build small, build big.

On the backburner for a while.
 

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I'm gutted that it probably won't happened, the tower is absolutely stunning, I'm scared that the land will be sold off and in a couple years some monstrosity gets built half the height, such a waste.
 

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The Australian 30/8

Crown hotel site in Melbourne reimagined as office tower
An artists impression of the Crown Resorts One Queensbridge building.
By BEN WILMOT
8:42PM AUGUST 30, 2020

James Packer’s Crown Resorts has proposed reorienting a major site in Melbourne where it once planned a $2bn hotel and apartment scheme into a new tower with a major office component.

The move by Crown would keep the hospitality aspect for casino guests and might help get the project off the ground if it can lock in a major corporate tenant in the tough post-coronavirus environment.

Large companies have put office moves on hold during the crisis but there is expected to be a flight to high-quality towers as corporate Australia gets back to work, with the Crown project among the city’s most ambitious.

The One Queensbridge Street site on Melbourne’s Southbank was originally approved to be the country’s tallest tower at 323m with 388 hotel rooms and 700 luxury apartments located opposite the casino.


But the scheme hit a roadblock in early 2019 when the Andrews government turned down a request to delay the start of construction. By late 2019, Crown bought out the private Schiavello Group’s half-stake in the site and pre-development assets for about $80m.

At the start of the year Mr Packer was talking up a new plan as one of the country’s tallest buildings with a footbridge linking the proposed skyscraper to the casino. In February, Crown said it was assessing options as the “site could accommodate a fourth Crown hotel which would deliver significant economic and tourism benefits to Victoria”.

However, the pandemic has left the Melbourne casino shuttered and international tourism has dried up, and The Australian understands a new development application is being worked up that could include 40,000sq m of office space, one of the city’s largest.

Crown chief executive Ken Barton. Picture: David Geraghty
Crown chief executive Ken Barton.

The plan would also include a hotel and small residential component, as pre-selling luxury apartments has become much tougher in the wake of COVID-19. Building the hotel element would allow the company to also refresh its three other Melbourne hotels once it was completed. Despite Crown and then partner Schiavello getting knocked back for a planning extension, the Victorian government would be likely to look favourably on a new scheme as it is desperate to kick-start activity in the CBD and an office block would help create jobs.

Crown told investors that the scheme would still retain top-class hotel elements in the high-rise of the tower, given the importance of this space for its customers.

While the company’s profit fell by 80.2 per cent to $79.5m and it was hit by forced lockdowns of its Melbourne and Perth casinos during the coronavirus pandemic, it reiterated its commitment to the Melbourne project.

Delivering the results, Crown chief executive Ken Barton said the company was looking at “options on what we can do with that property”.

“For us, it’s about a hotel. The question is what else can be economically and sensibly, with minimum level of risk, added to that site beyond a hotel aspect, whether it’s residential or commercial,” he said.

“Those are the things we’re looking at, but for us, it’s about getting a high-quality hotel offering at the east end of the property, and there aren’t going to be many opportunities for us to get an expansion of the property ... certainly nothing like the opportunity that comes with Queensbridge,” he said.

The Southbank site would appeal to tenants but would also face stiff competition from property heavyweights Lendlease, Charter Hall, Dexus, Cbus and Mirvac.

Fierce rivalry for tenants in the wake of the coronavirus crisis is likely to drive up incentives but if Crown snared a major pre-commitment it could on-sell the office component, de-risking the project.
 

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The shorter Green Spine tower (Rialto sized) also has a major office component.

I kind of wish Crown did nothing for a few years and let Green Spine go ahead first.
 

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Assuming 40,000 mentioned above is NLA and not GFA for the office side that would likely result in a 555 Collins St sized tower (~150m).

A 400 room premium hotel would add another 25 or so levels (~120m). Noting that Hilton at Melbourne Square was to be 600 rooms and around 160m'ish (project in doubt?).

Anyway, I'd say somewhere between Prima/Pearl to Eureka would be the likely result from the above tidbit. Somewhere around 150,000sqm should still possible.

Note, Crown has spent much more on this site than Beulah has for the BMW site.

In this climate, with the world still in the midst of a once-in-a-100-year pandemic, anything is better than nothing.
 

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Hmm why do I keep envisaging a shorter tower in this scenario?
Because your Qantas and it is 110% your MO to look at the bleakest/negative/pessimistic angle of anything and everything from here into perpetuity.

Crown got approval for 323m originally, large sites in the central core are becoming fewer and fewer, they spent another $80 mil buying out Schiavello, if they wanted to just get on with it and build a 20ish level hotel component to get the extra rooms they could do that very easily, but they don't.

They're talking about adapting the residential component to fit a new wave of commercial demand post COVID.

With the original design going for the country's tallest (at the time) and the riverfront vista it seems Crown are very willing to go for a statement piece here, whether it loses a few meters, is that the worst with Green Spine approved at 30+ metres taller right behind it? probably not.

Just wait and bloody well see before drawing the veil and holding a memorial service. Jesus Christ.
 

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The shorter Green Spine tower (Rialto sized) also has a major office component.

I kind of wish Crown did nothing for a few years and let Green Spine go ahead first.
have i missed something? why would one go ahead of the other?
 
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