CUB Mega-Project not 'On Hold': Developer

By Ian Neubauer

Frasers Property – the builder behind the redevelopment of the giant Carlton United Brewery (CUB) site in Sydney’s Broadway district – has denied reports of a hiatus on construction.

The Sydney Morning Herald reported last week the $2 million, 5.8 hectare redevelopment project had been put on hold by Frasers as a result of the credit crunch and fears of growing unemployment.

But Frasers managing director Stanley Quek released a statement this week saying the project is going ahead, with demolition, site remediation and archaeological investigation works continuing as per scheduled.

“It is not correct to characterise construction as ‘on hold’, as no approval has yet been sought or received for construction to commence,” Quek said. “Frasers continues to believe in the viability and substantial community benefit of the Frasers Broadway project and is continuing to work towards its realisation,” he said.

Quek added that construction is scheduled to commence in 2010 and will be developed in stages across 8 to 10 years, subject to development approvals and confirmation of project funding.

Yet it is the final part of the developer's statement that exposes the CUB project to speculation and sheds light on the difficulties associated with property development in the current economic climate, with banks and lenders becoming increasingly tight-fisted.   

“Frasers Property acknowledges that these are challenging times for the development industry with reduced access to project funding for large scale developments,” Quek said.

“Developers cannot develop without borrowings. Banks in Australia and Singapore are strong but have become tight with lending, carefully re-assessing risks before making decisions.”