278-398 Pacific Highway, Crows Nest

MBM Project Lead

Autumn Lu

Client Name

Freecity

Sector

Timeline

2024 – ongoing

Project Value

$140m

MBM Project Team

  • David Madden

Services Provided

MBM was engaged to assist with SSDA submission and cost planning during design phase.

Project Background and Scope

This landmark mixed-use development will deliver a vibrant and integrated urban precinct, combining retail, commercial office space, premium amenities, affordable housing, and build-to-sell residential apartments.
The development comprises a total of 156 residential apartments, including 30 affordable housing units, 82 private apartments for sale, and two exclusive penthouses. Rising to 40 storeys, the tower will be supported by a three-storey podium accommodating commercial uses and activated public interfaces. The structure will also include six basement levels, and back-of-house infrastructure.
The project scope includes the partial demolition of existing structures to enable the construction of the new high-rise form. Designed to enhance the surrounding urban fabric, the project will be constructed using conventional construction methodology and will contribute significantly to local housing diversity and economic activation.

Project Challenges

The integration of residential apartments, affordable housing, commercial office space, retail, and premium amenities within a single 40-storey mixed-use development, presents considerable scope management complexity. Each functional stream carries distinct compliance obligations, fitout specifications, and operational requirements, necessitating meticulous cost planning and coordination. Additionally, the inclusion of 30 affordable housing units within a premium residential context further compounds this challenge, as these dwellings are subject to strict cost caps, design standards, and funding conditions linked to government or social housing programs. With a diverse stakeholder group, there is a critical need for transparent cost communication, rigorous budget alignment, and strategic value engineering.

MBM Solutions

To ensure accurate budgeting across the diverse functional components of the development, MBM implemented detailed cost segregation and functional strategies that reflect the distinct compliance obligations and operational requirements of each use type. In response to evolving stakeholder expectations and the inherent risk of scope creep, MBM embedded robust change control processes to maintain clarity and budget discipline throughout the project lifecycle. Tailored cost planning and benchmarking against comparable affordable housing schemes have been undertaken to validate financial assumptions, supported by comprehensive compliance documentation to meet the requirements of funding bodies. Additionally, MBM has facilitated targeted value engineering workshops, enabling the design team to align architectural intent with budgetary constraints while preserving project quality and performance outcomes.