Heritage ruling next for $280m redevelopment of listed tea house

Developer Costa Fox’s proposal to redevelop a heritage-listed tea house in Melbourne has been granted a planning permit as the $280 million project passes the first stage of approval.

The redevelopment of the 135-year-old Robur Tea House site received the first formal approval at a City of Melbourne’s Future Melbourne committee meeting last Tuesday evening, paving the way for the development to seek formal approval from Heritage Victoria for a heritage permit. If approved, the planning application may need to be amended.

The five-storey red brick structure which was designed by architect Nahum Barnet and built between 1887 and 1888. It is of architectural significance “as one of the finest and most prominent examples of a 19th century warehouse in Melbourne,” according to its entry in the Victorian Heritage Database.

It was initially built for the manufacturing stationer Fergus and Mitchell and later used as a tea warehouse by Robur, which is how it got its name.  For many years, the South Melbourne warehouse was the tallest building in the city.

Designed by architect Nahum Barnet, the tea house is a heritage-listed property, which does have an impact on its future. Picture: realcommercial.com.au

The proposal would see part of the facade of the tea house demolished with the facade reinstated. A 25-storey hotel will be constructed to the south of the site and a three storey office and commercial building with a public garden will be built to the north of the site that connects via a walkway to the existing heritage-listed red brick structure. Retail and hospitality spaces would be included in the existing tea house, the space connecting to the hotel and the office building.

Under the current plans, the hotel will be built to target a seven-star NABERS energy rating and the commercial building will be constructed to target a five-star NABERS energy rating. Further down the track, the precinct itself will seek formal certification from Climate Active for its emissions.

Costa Fox reportedly paid $28 million for the heritage-listed Clarendon Street property which settled in early 2020. The purchase came after Heritage Victoria rejected a plan for a 24-storey development of the site in 2018 from developer RJ International.

Plan retains ‘existing original form of the Tea House’

While the council’s planning assessment of the current plan for the development does defer to Heritage Victoria who will ultimately rule on the merits of the project, it does state that it is in keeping with the character of the the Robur Tea House.

“The extent of demolition proposed to the existing building ensures the existing original form of the Tea House remains substantially intact having regard to its Heritage Significance and as such demolition under the Capital City Zone provisions is acceptable,” the planning assessment states.

Costa Fox director Geno Hubay told realcommercial.com.au that the company “fell in love with the existing tea house building” and that the decision to use Norweigan architecture firm Snøhetta on the project had been about ensuring design excellence from the beginning.

“Through exemplar design excellence, it’s a highly resolved and considered scheme with heritage at the absolute forefront, the tea house is the heartbeat for the entire project. So everything has been designed and the vision all links back to focusing on the tea house as the centrepiece,” Mr Hubay said.

For many years, the warehouse was the tallest building in the city. Picture: realcommercial.com.au

Snøhetta, a global design firm with offices all over the world, has also been appointed to the redevelopment of the Arts Centre in Melbourne and has previously worked on reviving Times Square and the 9/11 Memorial Museum Pavillion in New York plus the Alexandra Library in Egypt along with the Norwegian National Opera and Ballet.

Mr Hubay said the company will very soon to be lodging an application with Heritage Victoria to seek a heritage permit.

“We’re just extremely excited by what this project will bring bring to Melbourne, but we’re conscious of the Heritage Victoria process still needs to play out. And we’re committed to committed to working with heritage Victoria, to ensure the right outcome is achieved,” he said.

The plans for the project were submitted to council last May, before the war in Ukraine and other construction supply issues really hit, realcommercial.com.au understands that the revised total value of the project will be around $280 million.

Costa Fox is currently in talks with a well-known global accommodation brand about the hotel aspect of the redevelopment and this high-end operator has yet to enter the Australian market but has been looking for the right project.

“This operator sits in the luxury lifestyle category. It’s going to be a game changer for not only the Melbourne market, but also the wider Australian market, the offering that this operator brings,” he said.