Frank Gehry’s first Australian building approved for University of Technology, Sydney

The first Australian building designed by prize-winning American architect Frank Gehry has been approved with construction to start within months.

The 12-storey structure was designed for the University of Technology, Sydney.

Excavation of the Ultimo site near the ABC is under way.

The $125 million tower for about 1,300 students and 300 academic staff is due for early 2014 completion.

The tower will be called the Dr Chau Chak Wing Building, named after the Hunters Hill Australian-Chinese businessman and philanthropist who has donated $20 million to help build it.

The crumpled-looking 15,470 square metre building will be the university's new business school. Only two public submissions were received against the project during the public exhibition period last June, although the initial design was changed slightly to improve privacy in nearby apartments.

The tower will be built on a site now occupied by the former Dairy Farmers Milk Co-op warehouse building.

It will include parking for 177 bicycles and 20 cars, with onsite showers and lockers.

The new building will generate its own electricity with a gas-fired tri-generation plant, an initiative backed by the City of Sydney.

The new buildings are part of a UTS campus master plan, estimated to cost a total of $1 billion.