Sun. Oct 1st, 2023
    Melbourne’s CBD Hotel Market Thriving as Properties Hit the Market

    The hotel market in Melbourne’s Central Business District (CBD) continues to flourish, as evidenced by the latest property to be put up for sale. The Hotel Sophia, located on the corner of King and Little Lonsdale streets, is now on the market. The seven-story hotel, which also includes the Golden Age pub, is expected to sell for over $30 million. This property was originally purchased in 1993 for just $655,000, making it a potentially lucrative investment for the current owner.

    In addition to the Hotel Sophia, another notable property in the CBD was recently sold discreetly. Restaurateur Chris Lucas paid $23.5 million for 175 Flinders Lane, which houses his restaurant Kisume. This sale put an end to plans for a boutique hotel to compete with the Adelphi Hotel. The building was sold by Jackalope’s Louis Li for a substantial profit of $25.5 million.

    In South Melbourne, a Chinese investor made their first foray into the real estate market by purchasing a building on Douglas Street for $5.65 million. The Art Deco building is leased to four tenants and is located near the $500 million Greystar construction and rental project. Stonebridge agents handled the transaction and are now preparing to sell a warehouse on Ross Street.

    Meanwhile, in East Melbourne, developers Pelligra and Primeland have put their development site on Lauer Street up for sale. The joint venture recently obtained a new approval for a 14-unit project worth $80 million. This comes after the partners purchased the site for $22.38 million a few months ago. Elsewhere in East Melbourne, negotiations are underway for the sale of an undeveloped site on Hotham Street.

    Doncaster is about to see one of the most expensive childcare centers hit the market. Hume Partners is preparing to sell an Imagine Early Learning center for an estimated $19 million. The center has a 15-year lease agreement and is located near Westfield Doncaster and Bunnings.

    EcoWorld International, a Malaysian publicly listed developer, is selling strata office spaces in the South Yarra building it completed in 2020. The Malaysian Consulate occupies the first and second floors and has a new 10-year lease agreement. The offices are expected to sell for $7.5 million and include seven car parks. Additionally, half of the third floor, which has been occupied by the developer, is also up for sale.

    Lastly, construction company McConnell Dowell will be relocating to the Australia Post building in Richmond from Charter Hall. The firm has leased 3,500 square meters of space in the fully electric building, which aims for a 6-star Green Star rating.

    Sources: Savills, Stonebridge, CBRE, Cushman & Wakefield, JLL.