Borrowdale House in Woden may be redeveloped into a 24-storey building as the new owners have proposed to build 222 apartments on the site.
Canberra-based developer Keggins has bought the former Woden post office site and has planned a $75 million residential and commercial building on the 2229-square-metre site.
However, the community has expressed concerns about overshadowing and the building's height.
It came after Cromwell Property Group recently offloaded Borrowdale House and the neighbouring Lovett Tower.
In a recent business update, the real estate investment firm said it had entered into agreements with buyers for the buildings. Keggins bought Borrowdale House at the end of October. Lovett Tower was bought by a different developer.
Previous owners of Borrowdale House had an application for a 24-storey tower that was conditionally approved in 2010. The application had sat stagnant until earlier this year when it was given approval. This is despite the fact the building has since been onsold twice.
Borrowdale House was bought by Cromwell in 2015. They had planned to turn it into a multi-storey car park to service Lovett Tower, but these plans were abandoned.
Keggins acquired the site with the approved 24-storey development application and said the plans were in line with this.
The developer has dubbed the building "W2" and has planned to release apartments onto the market next Wednesday.
Keggins developed the Sapphire development on the Kingston Foreshore and general manager Brett Smith said the developer wanted to play a role in the "evolution of Woden".
"Keggins has a philosophy of hand-picking premium sites for its projects and we had a strong desire to play a part in the evolution of Woden," he said.
"This site is at the heart of the town centre with direct access to significant amenity so there's a great opportunity for us to deliver a project befitting its central location."
But the 24-storey tower plans faced community pushback in 2010, and it has again. Woden Valley Community Council president Fiona Carrick questioned why it was approved 10 years later.
"I don't know how you can drag out something which is 10 years old and not review the appropriateness of it," she said.
Ms Carrick said she was concerned about the height of the building. She said she felt the building's location on the edge of the town square would result in overshadowing.
"We're very concerned about the overshadowing and the wind impact," Ms Carrick said.
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Ms Carrick, who recently ran as an independent candidate for Murrumbidgee in the ACT election, has long campaigned against the permitted heights in the Woden town square.
Buildings in the town square can be up to 28 storeys. It already has the 26-storey Lovett Tower that was built in the early 1970s, but the other buildings are three storeys.
Keggins said they had shared shadow modelling diagrams with stakeholders and these had demonstrated no adverse impact on overshadowing.
The developer has planned to submit a development application for amendments to the impact on the town square, the facade and an increase of 14 units.