This allows for a $700 million residential development led by LAS Group. The deal removes height restrictions and boosts development potential, although it raises concerns about the future of urban density in premium locations.
Now owned by Blackstone, Crown is strategically selling non-core assets to concentrate on its main gaming and hospitality operations. The latest deal grants development rights above a car park next to its Melbourne casino, along with two land parcels on Clarendon Street and City Road. LAS Group is taking advantage of the opportunity to build two apartment towers, one rising 52 storeys and the other 25.
Although the original deal was struck three years ago, final planning approvals and transaction settlement have now unlocked major development options. LAS Group reportedly purchased the two land sites from Crown for around $30 million. The inclusion of air rights above the car park ensures uninterrupted skyline views from the towers and prevents Crown from building above that space, creating both technical and commercial advantages.
This deal reflects a broader trend in urban real estate, where developers are increasingly purchasing and monetising air rights. In highly built-up cities like Melbourne, vertical space is being valued not only for development but also to protect long-term value by maintaining views. As property markets continue adjusting to demand for more high-density housing, similar transactions are expected to rise.
Crown’s latest sale follows other significant divestments, including the sale of its stake in a Japanese dining chain for $266 million and Crown London for $11.3 million. Last year, it also sold a high-rise development site near the casino for $85 million. With profitability improving under new ownership, Crown is narrowing its focus on core interests, giving property developers an opportunity to leverage untapped inner-city areas.
