Senior Liberal party figures and donors, including the party's federal treasurer, have reaped multi-million windfalls from the former Baillieu government's signature urban renewal project in inner Melbourne.

An investigation into the controversial Fishermans Bend project has found Liberals' honorary treasurer Andrew Burnes is among a slew of party activists and donors who either bought into the renewal precinct before it was rezoned or were long-term property owners that pressed for redevelopment of the area.

Others include auto dealer John Ayre and BRW rich-listers John Higgins and Harry Stamoulis​.

In July 2012, then planning minister Matthew Guy stunned the political and property worlds when he rezoned a massive 250 hectares of low-rise industrial South Melbourne and Port Melbourne to "capital city", effectively doubling the size of the Melbourne CBD.

It was the most contentious decision by a Victorian planning minister for decades.

The widely criticised move triggered a dramatic increase in land values and a development frenzy of 46 apartment towers – some reaching more than 60 storeys – that have been proposed or approved in the precinct since January 2014.

In October 2014, CBRE commercial property director Mark Wizel​ estimated land values had increased up to 500 per cent since the rezoning.

For sites where developers have won planning approval for high-rise towers, the increase is greater still.

Confidential briefings to Mr Guy, obtained by The Sunday Age, reveal proposed boundaries for the precinct were drawn up behind closed doors as early as March 2011, shortly after the minister made a broad statement about future redevelopment of an unspecified area he called Fishermans Bend. 

The biggest winners from the rezoning were those who already held property, or were in the process of buying into, Fishermans Bend.

Among them is Liberal party honorary treasurer Andrew Burnes, a close friend of former Federal treasurer Joe Hockey.

Mr Burnes and his travel company, Australian Outback Travel, donated at least $150,000 to the Liberals in the past 15 years, including $80,000 in the year 2013-2014.

He paid just over $7 million for new offices for his business at Laconia House at 179 Normanby Road, near the West Gate freeway in March 2012, the most expensive of about 80 land acquisitions in Fishermans Bend in the 16-month period between the drawing of the boundaries and the July rezoning.

Agents estimate the current value of his Normanby Road property at more than $20 million. High rise development is allowed on the site and a permit for such development would dramatically increase the property's value. Nearby, a two-tower project with 525 apartments that was given planning approval in May is now a project worth more than $130 million.

Another eyebrow-raising purchase at Fishermans Bend was by one-time Liberal activist and current BRW rich lister Harry Stamoulis, who was negotiating a $24 million purchase of a large industrial site in South Melbourne when Mr Guy rezoned the area in 2012.

Stamoulis' proposal for 258 townhouses was the first to win planning approval from Mr Guy. Agents now value his Ingles Street property at more than $60 million.

The fortuitous timing of the Stamoulis purchase has been the subject of much commentary among agents active in the precinct, planners, and even within the state bureaucracy.
Others with Liberal links had bought into the area years prior to the rezoning, but were active party donors around the period the boundaries were drawn and gazetted.
Auto dealer John Ayre is a member of a consortium proposing a $1 billion apartment complex on former Crown land at 150 Turner St and at 351 Ingles Street in Port Melbourne.

The first site was Crown land gifted to the group in 2003 and they paid a mere $1.5 million for the second site in the 1990s; agents now value them around $80 million.
Mr Ayre is a shareholder of ULR Automotive, which donated $25,000 to the Liberals in 2013. He personally donated $13,500 in 2013-2014. 
In the mid-1990s BRW rich lister and Liberal donor John Higgins paid $936,000 for a site at 297 Ingles Street that is now worth an estimated $15 million. He donated $25,000 to the Liberal party in 2013.

Some party donors bought in to Fishermans Bend after the rezoning, but have made significant paper profits  under flexible height limits  introduced by Mr Guy, now leader of the Victorian Liberal Party.

Notable among those donors is developer and Liberal supporter Bill McNee's company MaxVic Holdings, which paid $10.1 million for a Johnson Street site in 2014.

In May, this year McNee's development company VicLand won state government approval to build more than 1300 apartments across four towers on the site under rules established by Mr Guy.

It is now seeking to "flip" the site for an expected price of more than $70 million – a seven-fold increase on the purchase price.

Mr McNee's VicLand corporation donated $150,000 to the Liberals between 2012 and 2014.

Other Liberal donors to make windfalls include property veterans like the Buxton family (MAB Corporation) who had been sitting on low-value industrial land in South Melbourne for decades.

After paying $483,000 for a site in Gladstone Street site in the 1990s, MAB sold the site with a planning permit for three apartment towers in April this year for a price believed to be $37 million.

At the time the rezoning decision was made, there was no binding master plan, height limits, or any mechanism to capture any of the rise in property values to ultimately pay for the infrastructure and services of a residential community that could be large as the City of Ballarat.
Nor was there a strategy or funds for decontamination, transport, open space or affordable housing.

Instead, the rise in land values delivered billions of dollars in windfall to landowners.

Senior planners remain bemused as to why the large-scale rezoning at Fishermans Bend occurred when government-sponsored Docklands next door remained unfinished and planning had already started for publicly-owned sites in North Melbourne and E Gate in West Melbourne.

Property industry sources are adamant that one of the reasons was the influence of some long-standing landholders and speculators who are also Liberal Party supporters.
Property values were further inflated by the minister's invitation to developers to lodge applications for projects anywhere within the precinct's wide boundaries (rather than release sites in stages as backed by many experts), and before any planning controls were in place.

Mr Guy has repeatedly refused to be interviewed by Fairfax Media about his Fishermans Bend decision. So too has he refused to answer a specific questions about his actions.
Instead he issued a written statement: "Melbourne is growing by nearly 2000 people every week and Fishermans Bend is a vital part of meeting these housing needs and that is why it was one of our election policies in 2010."
In fact, Fishermans Bend was not one of the Liberals' election policies in 2010.

In April, Labor planning minister Richard Wynne said he would "recast" plans for Fishermans Bend – a move he said reflected the high level of government, community and property industry concern about the project.

But he now faces the difficult decision of how far to go given a string of approvals have already been granted and land values have been geared to the premium of high rise residential development.

Mr Burnes is overseas and did not return calls or emails. Mr Higgins, Mr Ayre and Mr Stamoulis did not return calls.
The Sunday Age is not suggesting any inside knowledge or wrongdoing on the part of any of the landholders.

In October, an Andrews government-appointed expert committee report found the overnight creation of Fishermans Bend was "misguided" and that the rezoning of such a major urban renewal area ahead of detailed strategic planning was "unprecedented in the developed world in the 21st century".

- Royce Millar, Chris Vedelago, Ben Schneiders

The Liberals always fail at probity. They have been lining each other's pockets for decades.

Who sold off all the schools under the Kennett government? The firm of Baillieu Knight Frank.

no surprise ... in fact, whenever the libs announce a project you can almost always be sure their lackeys have already bought in on it and stand to profit.

Sadly when it comes to property developers, both sides are as guilty as the other.

Just come look at the ACT legislature, its basically just a rubber stamp for Canberra property groups.

What is the problem ?

Liberals are crooks there is no news here, you should know that up front when you vote for them.

You elect crooks and then that is what you get. No point complaining about it.

Indeed, still waiting for new news.  Tell me something I didn't already know.

Bam wrote on Nov 1^st, 2015 at 9:01am:

The Liberals always fail at probity. They have been lining each other's pockets for decades.

...as opposed to Labor whom live out of everybody else's pocket, except their own

Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets?

Jovial Monk wrote on Nov 1^st, 2015 at 11:26am:

Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets?

....the majority that pay the minority of tax. 

Jovial Monk wrote on Nov 1^st, 2015 at 11:26am:

Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets?

Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so?

Armchair_Politician wrote on Nov 1^st, 2015 at 2:11pm:

Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so?

Howard inherited Hawke and Keating's hard work.

The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else.

What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse?

mothra wrote on Nov 1^st, 2015 at 2:20pm:

Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse?

So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'.

It is hard to do anything else other than laugh and mock at such stupidity.

mariacostel wrote on Nov 1^st, 2015 at 6:19pm:

mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity.

No. That is just incidental. Of course.

mothra wrote on Nov 1^st, 2015 at 6:20pm:

mariacostel wrote on Nov 1st, 2015 at 6:19pm: mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity. No. That is just incidental. Of course.

You meant CO-incidental.

And you wonder why we are STILL laughing.

mariacostel wrote on Nov 1^st, 2015 at 6:43pm:

mothra wrote on Nov 1st, 2015 at 6:20pm: mariacostel wrote on Nov 1st, 2015 at 6:19pm: mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity. No. That is just incidental. Of course. You meant CO-incidental. And you wonder why we are STILL laughing.

No, I meant incidental.

mothra wrote on Nov 1^st, 2015 at 6:47pm:

mariacostel wrote on Nov 1st, 2015 at 6:43pm: mothra wrote on Nov 1st, 2015 at 6:20pm: mariacostel wrote on Nov 1st, 2015 at 6:19pm: mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity. No. That is just incidental. Of course. You meant CO-incidental. And you wonder why we are STILL laughing. No, I meant incidental.

Yep, that really 'helps' your cause.


;D ;D ;D ;D ;D ;D ;D ;D

mariacostel wrote on Nov 1^st, 2015 at 6:54pm:

mothra wrote on Nov 1st, 2015 at 6:47pm: mariacostel wrote on Nov 1st, 2015 at 6:43pm: mothra wrote on Nov 1st, 2015 at 6:20pm: mariacostel wrote on Nov 1st, 2015 at 6:19pm: mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity. No. That is just incidental. Of course. You meant CO-incidental. And you wonder why we are STILL laughing. No, I meant incidental. Yep, that really 'helps' your cause. ;D ;D ;D ;D ;D ;D ;D ;D

What cause? I just stated fact.

mothra wrote on Nov 1^st, 2015 at 7:08pm:

mariacostel wrote on Nov 1st, 2015 at 6:54pm: mothra wrote on Nov 1st, 2015 at 6:47pm: mariacostel wrote on Nov 1st, 2015 at 6:43pm: mothra wrote on Nov 1st, 2015 at 6:20pm: mariacostel wrote on Nov 1st, 2015 at 6:19pm: mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity. No. That is just incidental. Of course. You meant CO-incidental. And you wonder why we are STILL laughing. No, I meant incidental. Yep, that really 'helps' your cause. ;D ;D ;D ;D ;D ;D ;D ;D What cause? I just stated fact.

Sorry the backpedaling never worked. For that, I give you a two. Two out of ten. 2/10 .

He Man wrote on Nov 1^st, 2015 at 7:14pm:

mothra wrote on Nov 1st, 2015 at 7:08pm: mariacostel wrote on Nov 1st, 2015 at 6:54pm: mothra wrote on Nov 1st, 2015 at 6:47pm: mariacostel wrote on Nov 1st, 2015 at 6:43pm: mothra wrote on Nov 1st, 2015 at 6:20pm: mariacostel wrote on Nov 1st, 2015 at 6:19pm: mothra wrote on Nov 1st, 2015 at 2:20pm: Armchair_Politician wrote on Nov 1st, 2015 at 2:11pm: Jovial Monk wrote on Nov 1st, 2015 at 11:26am: Yet public debt is now $400Bn. Just who is living out of other peoples’ pockets? Debt when Howard left office was... wait - zero! But what was the debt inherited by the Coalition? Something like $300bn or so? Howard inherited Hawke and Keating's hard work. The debt inherited by Abbott was because of the GRC. We still did better than just about everybody else. What of the debt now Armchair? Bit bigger than when Abbott came to power, isn't it. What's hos excuse? So your 'logic' is 'if it is good it was inherited from labor' and if it is bad 'it is the libs fault'. It is hard to do anything else other than laugh and mock at such stupidity. No. That is just incidental. Of course. You meant CO-incidental. And you wonder why we are STILL laughing. No, I meant incidental. Yep, that really 'helps' your cause. ;D ;D ;D ;D ;D ;D ;D ;D What cause? I just stated fact. Sorry the backpedaling never worked. For that, I give you a two. Two out of ten. 2/10 .

Every time she replies, she makes it worse!