Works set to begin this year for Zagame-owned BTR project

Melbourne-based developer PDG is set to commence work this year on a new build-to-rent (BTR) project, replacing the Audi Centre, which is owned and operated by Bobby Zagame, a prominent campaign donor to Lord Mayor Nick Reece.

Minister for Planning Sonya Kilkenny approved the proposed development in January 2024, with the Audi Centre to be demolished and replaced with three buildings ranging in height from six to 10 storeys.

PDG and the Zagame Group are currently in the planning and design stage of the project, located at 577 King St, West Melbourne. PDG has confirmed its intention to begin construction later this year.

The development, designed by DKO Architecture, will deliver 259 new dwellings across the site, including one- and two-bedroom apartments, seven townhouses fronting Roden St, and seven small offices fronting King St.

In October 2023, the plans were unanimously endorsed by the council. The now Lord Mayor praised the development, stating it would enhance West Melbourne as the area experiences a “renaissance”.

However, Cr Reece has since faced scrutiny after accepting a $20,000 campaign donation from Audi Centre Melbourne during last year’s City of Melbourne election.

The donation was received just two days after the council voted to discontinue part of its Roden Street Greening initiative, which formed part of plans to create a new linear park.

Cr Reece described the proposal as a “green oasis”, with plans to add 1000 square metres of tree plantings, as well as new kerbs and channels, seasonal garden beds and paths, and a reconfiguration of parking spaces to ensure no loss of parking.

North West City News is not suggesting that any of these donations influenced the Lord Mayor’s decisions or were improper, only that they raise concerns regarding his pledge not to accept donations from developers within the City of Melbourne.

In an interview with The Age, Bobby Zagame stated that he was a Melbourne resident and business owner, and that several of Nick Reece’s policies aligned with his values.

However, a former City of Melbourne councillor told North West City News that because it was difficult to define a developer in law, there was confusion surrounding who is, and who isn’t, a developer.

Rohan Leppert, who served on the council for 12 years until last year, said that he personally defined a developer as someone who had a narrow interest in a company whose primary purpose is to purchase and sell property at a profit.

“Because the public will assume that a developer is someone who stands to make substantial profits from the development of property that they own, it’s the definition of developer that’s causing all of these problems,” he said. •