CBD redevelopment given green light after Marriner Group donated to mayor’s campaign

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The City of Melbourne has approved a major CBD redevelopment proposed by the Marriner Group one year after the now Lord Mayor Nick Reece, who promised not to take donations from property developers, accepted a $25,000 donation from the group.

Together with Lasalle Investment Management, the Marriner Group wants to demolish part of the heritage-listed Comedy Theatre on Exhibition Street and build a 27-storey tower behind it containing offices and a 270-room hotel.

The proposed redevelopment would create an office tower and hotel at the rear of the Comedy Theatre.

Reece, as well as councillors Roshena Campbell, Kevin Louey and Mark Scott, who were all candidates on “Team Nick” for the election, recused themselves from the decision. Philip Le Liu also had to recuse himself, as he had received a donation from the Marriner Group as part of “Team Arron Wood” for the election.

With only six councillors able to vote on the development application, the council was only just able to make quorum.

The council resolved unanimously to advise the government that it “does not object to the application” subject to conditions such as the preparation of a hotel management plan.

Accountability and transparency around donations became a major issue at the last local government election after some candidates committed to real-time disclosure of donors.

Leading contenders such as Reece, Arron Wood and ex-footballer Anthony Koutoufides refused to do so, but the now-mayor asked his donors to sign a form saying they were not developers.

Last year, the Marriner Group donated $25,000 to Reece’s mayoral campaign.

When asked about the donation and the proposed Comedy Theatre redevelopment by The Age last year, Reece said: “My understanding is that development is not proceeding.”

Reece did not respond to a question on whether the Marriner Group signed a form declaring that it was not a developer, despite the fact the group owns major commercial properties within the City of Melbourne and that the application for the redevelopment of the Comedy Theatre was first lodged in May 2022 and updated in July 2023.

Another updated application was submitted in March 2025, five months after Reece was elected mayor.

At a Future Melbourne council meeting on Tuesday night, the council backed the latest proposal for a $211 million redevelopment, despite objections from residents.

The City of Melbourne assessed the application as the referral authority, but the ultimate decision rests with Planning Minister Sonya Kilkenny.

An artist’s render of the proposed Comedy Theatre redevelopment.

Reece raised $950,484 for his election campaign from a who’s who of Melbourne, including wealthy business people, trade unions and developers.

The Marriner Group, which manages and operates the Princess Theatre, Regent Theatre, Forum Melbourne, Plaza Ballroom and Comedy Theatre, was one of the largest donors to his campaign.

Jason Marriner, chief executive of the Marriner Group, at the Comedy Theatre after it reopened following a COVID pandemic lockdown in 2020.

When asked on Thursday whether he had breached his own promise given the updated development application, Reece said Marriner Group chief executive Jason Marriner was a theatre owner who had passionately supported cultural life in Melbourne for decades.

“The Marriner Group is not a property developer – it is the owner of the Comedy Theatre, which made them an interested party in this particular matter,” he said.

Resident Jennifer Eltham said the council’s actions raised serious governance, transparency and probity issues.

“How can a community have confidence in a process when the proponent is simultaneously making large donations to the very decision-makers assessing their project?” she said.

“The circumstances create the perception of undue influence and risk undermining the integrity of both the planning system and heritage protection.”

Eltham said she was concerned for the future of the Comedy Theatre, one of Melbourne’s most cherished venues.

“It feels like a textbook David and Goliath scenario, or straight out of The Castle: powerful players negotiating behind closed doors while the people who actually live here simply don’t count,” she said.

Eltham said the inclusion of a hotel in the most recent application was a major change made without notice, and she was concerned that Punch Lane, a small residential heritage laneway, would bear the brunt of any noise, vehicles and overshadowing from the development.

Fellow resident Nicola Smith said the huge tower would completely dominate the theatre and affect nearby residents’ sunlight.

“As a community, we have a right to believe that council is going to follow its own rules and frameworks,” she said.

Urbis consultant Jamie Govenlock addressed the council meeting on behalf of the Marriner Group and Lasalle Investment Management and said the redevelopment had been “a five-year process”.

Govenlock said no meaningful improvements had been made to the Comedy Theatre since it was built in 1928 and the redevelopment would provide a much-needed refurbishment, along with additional space and operational capacity for the theatre.

He said the redevelopment would enhance the competitiveness of the space to attract the best international shows.

“We’re not competing with Sydney,” he said. “Sydney’s killing us with some of this stuff.”