Gurner's revised plan for the Southbank Tower has been approved.

According to the plan, as part of a $350 million, 41-story tower development project, the serviced apartments on the plot will be replaced by construction rental services

The Golden Teardrop Tower designed by Warren and Mahoney submitted a development application to the City of Melbourne in October for the 1,625 square meter site located at 334 City Road.

This project is the second seed asset in Gurner Qualitas' construction lease platform-the other two seed assets are currently under the control of the Melbourne group, but are still subject to non-disclosure agreements.

The Melbourne Future Committee unanimously approved the revised plan this week, allowing the construction of 396 rental apartments, private gyms on the first and first floors, and a new exterior wall.

Tim Gurner, the founder of Gurner, stated that he will focus on the hospitality on the ground, middle and roof, as well as "world-class health and wellness areas."

“Our South Bank project at 334 City Road will bring together world-class amenities, luxurious interiors, facilities and services, enabling us to provide leading residential options for high-end individuals in the rental market,” Gurner said.

"We are very excited about the recent support and look forward to obtaining planning approval soon so that we can start construction in the new year, and the expected completion date will be 28 months later."

Gurner Design General Manager Alexander Fin stated that they wanted to "improve the design" for the site they acquired, which led to a design competition for the redesigned building.

"We think [this] is a huge improvement... We obtained the venue with permission in 2016," Fin said.

"We take development seriously, and we take development of great buildings seriously."

According to Warren and Mahoney’s head Nick Deans, the redesign focused on the “resident experience” has also honed its internal floors and architectural forms to provide larger living and bedroom spaces.

"Our vision for this project is to create a world-class construction rental project that will set a new benchmark for this property class in Melbourne," Deans said.

"We enhanced [2016 Permit] with fully activated podiums, lower street walls, high-quality apartment layouts, and modern design responses."

The tower will include 56 studio apartments, 128 one-bedroom apartments, 198 two-bedroom apartments and 12 three-bedroom apartments. It will be a net zero operating building with zero gas, a 5-star green star and a 6.5 Nabers rating.

Deputy Mayor Nicholas Reece said that the Melbourne City Council had rejected plans for the site twice before, but the revised plan would “leave a mark on the South Bank”.

"Gurner is a developer known for his emphasis on architecture and design, and is very avant-garde for their designs when needed," he said.

"It will make an outstanding contribution to the South Bank skyline.

"I think new uses and including the construction of rental housing are what we should support. It is a good thing to provide people with a series of alternative ways to enter Melbourne's homes."

Earlier this year, Gurner founder Tim Gurner (Tim Gurner) stated that according to the approval, the demolition of the site will begin in early 2022.