GROLLO TOWER MARKET ASSESSMENT

In 1998, the World's Tallest Building was proposed by local developers Grocon Pty Ltd as part of their bid to develop Batmans Hill precinct at the Melbourne Docklands. This bold proposal involved 60,000 m² of office floorspace, a 6-star hotel, 450 apartments and retail facilities, and was designed by award-winning architects Denton Corker Marshall.

Surrounding the Tower, the rest of the precinct was planned to house a 3-star hotel, plenary centre, additional office accommodation and retail activity.

In order to be awarded the right to develop at the precinct, strict requirements needed to be met in terms of planning, urban design and economic impacts.

Essential Economics were commissioned to undertake the economic assessment of the project. This piece of work needed to establish:

1. That the development was warranted in terms of market demand for the various components of the site (office, hotel, apartments, retail); and
2. That the proposal would contribute to economic development in Victoria by realising a net economic benefit over and above any alternative development for the site.

Our assessment showed that the proposal, when completed in 2005, would lead to employment and income growth beyond that achieved by any alternative development at the site, and that the additional activity could be accommodated in the expected market conditions in 2005.

The Grollo Tower proposal was named as the winning bid for the Batmans Hill precinct. However, additional bids were called for the Batmans Hill precinct after disagreement between Grocon Pty Ltd and the Melbourne Docklands Authority over financial obligations. The Grollo Tower proposal has been re-submitted for consideration, and a decision on the winning bid is expected shortly...

Visit the World's Tallest Building site