Mr Besen’s proposal was rejected by the local Yarra councillors as being too close to the UNESCO buffer zone around the Exhibition Building, which seeks to protect views and limit overdevelopment near the heritage-listed site.

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But an appeal to the Victorian Civil and Administrative Tribunal resulted in the plans getting a green light.

Before the hearing, amended plans were circulated which reduced the overall height of the building by 1.5 metres.

Mr Besen, well known in business circles, is the son of billionaires Marc and Eva Besen, who founded clothing chain Sussan Group, now controlled by their daughter, businesswoman and philanthropist Naomi Milgrom.

Tribunal members Michael Deidun and Lorina Nervegna acknowledged that there was “significant community opposition” to the plans. But they found, after much analysis, the “proposed building on the review site does precisely what is encouraged and sought by the Yarra Planning Scheme.

“[It] is an appropriate response to the character and significance of the various heritage places that surround the review site,” they said.

The structure includes four shops, a restaurant and art gallery on the ground floor, offices on the first, second and third floor, and a three bedroom penthouse apartment on the fourth floor.

“The council made changes to application to allow the development but at the same time to protect the world heritage site. The tribunal’s decision says that these world heritage protections zones are not worth the paper they are written on. A parking fine has more weight,” Yarra councillor Steve Jolly said.

Mr Besen has bought and sold multiple properties and his parents have an extensive property portfolio. Four years ago they sold a quarter share of the Highpoint shopping centre in Melbourne’s west to real estate fund GPT for $680 million.

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