This article is from the Australian Property Journal archive
A mid-rise office building site on the edge of Melbourne’s CBD earmarked for a 20-storey residential and hotel tower has hit the market with expectations of $45 million.
The eight-level-plus-basement building at 10-16 Dorcas Street, South Melbourne is within the Domain precinct, and is located near the under-construction Anzac station that is part of the Melbourne Metro tunnel works.
It was acquired for $37 million in 2017 by developer BEKL from Australian Islamic investment manager Crescent Wealth, which had paid $30.75 million for the property only two years prior.
BEKL lodged plans in March 2020 for a 20-storey tower after striking an agreement with InterContinental Hotels Group (IHG), with IHG to operate a new 171-key hotel within the Plus Architecture-designed tower under the Voco brand. Above the hotel, the tower would also have 36 apartments, which were launched in November 2021, while there would also be an office component used by BEKL’s co-working space venture Curago.
The current building measures 10,639 sqm and offers secure off-street parking for up to 88 cars, with an underlying landholding of 1,301 sqm with dual street frontage to Dorcas Street and Wells Place, offering views of the Shrine of Remembrance and Botanical Gardens.
The property features an efficient side service core configuration, allowing for ample natural light and optimal flexibility in tenancy configurations. Floor plates average over 1,000 sqm.
Cushman & Wakefield’s middle markets team of Oliver Hay, Daniel Wolman and Leon Ma have the listing.
“The current permit approval for high-end luxury apartments and a hotel development provides an exciting opportunity for investors looking to explore diverse avenues in a thriving lifestyle area,” Hay said.
He said potential buyers will have the option to further enhance the property’s value through refurbishment and subdivision or even consider future redevelopment possibilities.
The expressions of interest campaign closes 7th September.
The campaign has been launched at the same time nearly 2,000 sqm of Melbourne CBD land with approval for a dual-tower hotel development has been listed for sale, with expectations of around $30 million.
Located at 540 Flinders Street, the 1,971 sqm site currently features a two-level office-warehouse with prominent dual frontage to Flinders Street and Flinders Lane. It has approval for two hotel towers of 24 and 30-storeys over a shared podium, comprising a total gross lettable area of 22,591 sqm.
CBRE and Colliers have that listing.
