Heidelberg project exterior

Case study · Mixed use · Heidelberg

Two six-storey towers, joined by a link in the air.

A planning permit and an air rights agreement turned two retail sites, split by a public laneway, into one mixed-use development.

Location
Heidelberg, VIC
Sector
Mixed use
Client
Burgundy Street Investments
Authority
Banyule City Council
Value band
$15M–$20M
Status
Completed 2019
Residential apartments
31
Residential apartments
Nett lettable area, retail and office
1,600 m²
Nett lettable area, retail and office
Six-storey towers
2
Six-storey towers
Engagement to permit
2 yrs
Engagement to permit

01 — The project

Two retail sites, split by a public laneway.

Client
Burgundy Street Investments Pty Ltd
Brief
Maximise yield across commercial and residential uses
Setting
Divided by a public laneway
Existing site
Two sites, each with an existing retail building

The client wanted to maximise yield across commercial and residential uses. On face value, the site was two separate sites with two separate retail buildings.

Heidelberg supplied project view

02 — The problem

One link. One legal agreement.

Joining the two sites meant building over a public laneway. That needed a planning permit and Council's agreement to use the air above it.

  1. 01Planning

    A double-storey link above a public laneway

    We obtained a planning permit for a flying link joining the two six-storey towers, creating an all-weather connection between them.

  2. 02Legal

    An air rights agreement with Council

    This took extensive coordination and negotiation. Lawyers drafted the agreement and saw it executed with Council.

Who we worked with

  • Banyule City Council
  • Lawyers

03 — The first move

The suspended linkway.

A conventional reading of the planning controls would have produced two separate developments. We saw the chance to link the sites at high level, and we had the expertise to deliver it.

That single idea turned two sites into one, with every apartment and tenancy able to connect across the laneway.

Villa StreetLanewayBurgundy Street
ApartmentsApartments
ApartmentsApartments
ApartmentsLinkOffice
Car parkLinkOffice
Car parkPublic lanewayOffice
Car parkPublic lanewayRetail

Two-storey link over the public laneway; air rights agreement executed with Banyule City Council.

04 — Before & after

One building

What a by-the-book reading of the controls would have delivered, against what was approved.

Conventional scheme

2
Separate developments

The rear development would have been less marketable because of its inferior location.

Approved scheme

31
Apartments
1,600
m² nett lettable area (retail/office)

One consolidated development, with car parking and primary access from the main shopping precinct.

2→1developments

How the link was won

The link required extensive coordination with Council and an executed air rights agreement, allowing both buildings to work as a single site.

05 — What we delivered

One practice, from first sketch to site.

De Nova led design, approvals and documentation directly, then administered the contract through construction.

  1. Schematic design

    Massing, yield and the link.

    Complete
  2. Town planning

    Permit and air rights.

    Complete
  3. Building documentation

    Full documentation.

    Complete
  4. Tender

    Builder procurement.

    Complete
  5. Contract administration

    Through to completion.

    Complete

Completed 2019

06 — Working with Council

Planning permit and air rights.

A pre-application meeting was held before lodging. The link required both a planning permit and an air rights agreement with Council.

Banyule City Council
Pre-applicationHeldBefore lodging
Objections1 receivedManaged & Approved

Planning permit — Council24 months

Council negotiation ran through the air rights agreement as well as the planning permit.

07 — Honest notes

What we'd tell you over coffee.

Nobody in our industry publishes this part. We think you should see it.

What wasn't perfect

We couldn't push the yield higher.

The client was happy with the result. But Council's Design Development Overlay set prescriptive building heights and street-wall setbacks that it wouldn't relax.

We maximised yield within those limits.

Would we do it differently?
Consider more residential and less commercial space.

After COVID, working-from-home policy had a major impact on the office leasing market.

— De Nova Group director

Project imagery

The proposal

Street frontage
Basement car park
Apartment kitchen
Apartment bathroom

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