Plans to transform Anzac Park East into a housing and commercial complex are one step closer to coming into effect, after developers were given the green light to start work at the prominent site.
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The National Capital Authority on Friday approved Amalgamated Property Group's application to bulldoze the derelict office building, at the north-eastern corner of Parkes Way and Anzac Parade.
The building, which has sat vacant for more than 20 years, is one Anzac Parade's so-called "portal buildings", which frame the vista from Parliament House to the Australian War Memorial.
The developer has also been granted permission to rip up the site's trees and carpark ahead of a transformation of the Commonwealth heritage-listed block, which it last year bought from the federal government for $34.3 million.
The Canberra-based property group is planning to redevelop the site with a mix of housing and commercial spaces, although it is yet to reveal the specifics of the project.
Buildings up to 35 metres in height - including housing, hotels, shops and offices - are permitted on the site.
Advertising billboards, with the tag line "a new chapter in our city's history", will be installed around the block during the demolition and construction phase.
The sale and planned redevelopment of Anzac Park East has raised the ire of heritage groups, who fear the historic Anzac Parade vista could be ruined if the twin portal buildings are not developed in unison.
Anzac Park West, which the federal government also sold off last year, is set to remain standing for another 30 years under a long-term lease with the Defence Department.
The National Capital Authority received four submissions during consultation on the proposed demolition of Anzac Park East, with respondents raising concerns about the loss of trees, carparks and the prospect of apartments on the historic site.
In a summary of his submission published by the authority, architect Penleigh Boyd said there would be a loss of "embodied energy" if the office building was demolished.
Mr Boyd said there was no need to bulldoze the 25-metre-high building, saying it should instead be refurbished for another use.
In its response, the authority said the federal government received separate proposals to demolish and refurbish the building during a tender for the sale of the site, with Amalgamated Property Group's bid ultimately successful.
The authority said testing had also revealed the land was contaminated with asbestos and other pollutants, meaning the site would need to be excavated and remediated in preparation for future use.
It said strict planning and design rules for the precinct would ensure the "portal intention" of the site was protected.
The developer is required to lodge separate plans for its proposed housing and commercial complex, which will be subject to further round of public consultation.
