Hotel-Approved Sites Go to Market in Melbourne

The listing of sites with existing permits or planning approval continues with two more up for sale in Melbourne.

Both have planning approvals in place for hotel developments.

One is a site at 540 Flinders Street in Melbourne’s CBD, that the Ormond Group, the Malaysian company that runs the Tune Hotels franchise, was planning to develop as a two-tower on a shared podium project on the 1971sq m site.

The plans designed by Elenberg Fraser and Craig Tan Architects included 517 suites across the 30-storey and 24-storey towers as well as a 12,000sq m events centre.

One tower was to operate as the Ormond Melbourne and the other as Momo’s Melbourne at two different price points.

Point Polaris was to handle the construction and development. 

A two-storey warehouse is on the site currently.

It is being brought to market as the owners are "considering a change in strategy”.

CBRE’s Scott Callow and Nathan Mufale will handle the sale alongside Colliers’ Jozef Dickinson and Trent Hobart.

An expressions-of-interest campaign for the site is due to close on September 7.

▲ The site at 540 Flinders Street which was earmarked for two hotel towers.

“An incoming owner could look to pursue the existing hotel scheme, underpinned by the rapid recovery in the Melbourne hospitality sector, or examine a range of alternate development options,” Callow said.

Dickinson said build-to-rent could also be an option.

“The flexible Capital City Zoning and permitted building envelope opens up a lot of opportunities for build-to-rent and a number of other uses, to take advantage of the compounding effects of strong and improving market fundamentals and a scarcity of supply throughout the Melbourne CBD,” he said.

The site is near the Yarra River, Crown Casino and the Melbourne Exhibition and Convention Centre.

Other hotel projects are in the works in the area including Sterling Global’s project opposite The Age building near Southern Cross Station and the redevelopment of the Sir Charles Hotham Hotel.

The Waterside Hotel on the other corner of the same block is also being redeveloped.

Meanwhile, developer BEKL is selling a site at10-16 Dorcas Street in Southbank’s Domain Precinct.

Initially earmarked for the Vivere project, the site and its eight-storey office building is now on sale with planning approval for a 20-storey luxury apartment and hotel project.

It is near the new Anzac Station. The sale prices has been estimated for around $45 million. 

A basement is also part of the approved plans for off-street parking for 88 cars on the 1301sq m site. The approved building would have a total area of 10,639 square metres.

There is frontage to Dorcas Street and Wells Place and the site has views of the Shrine of Remembrance and the Botanical Gardens. 

Cushman and Wakefield Middle Markets Team members Oliver Hay, Daniel Wolman and Leon Ma will handle the sale. 

An expressions-of-interest campaign is due to close on September 7.