Hyatt Centric leases undeveloped South Yarra hotel

2-10 River Street, South Yarra (outlined)

Prestige guest house Hyatt Centric plans to open its second Melbourne hotel in South Yarra.

The innkeeper has leased all of a proposed 153-key development earmarked to replace a 2116 square metre site, 2-10 River Street, which Alfasi Property Group paid $18.5 million for, last November.

Alfasi bought the site, currently low-rise warehouses and a car park, which for years prior was occupied by caterer Peter Rowland OAM for his hospitality business (that enterprise, Peter Rowland Catering, sold last year to a new entity, Peter Rowland Group, of which Mr Rowland is Chairperson).

In May, Alfasi lodged an application to build a luxury 10-storey complex, and now has secured Hyatt Centric as the tenant for the proposed Carr Architects designed project (pictured, top).

The 4.5-star development would include a 346 sqm restaurant/bar and 292 sqm event space on the ground floor – able to accommodate a combined patronage of 300 people at any given time – and which Hyatt Centric will control.

A total of 17 car parks and “design extras” including landscaped terraces, also form part of the proposal currently sitting before the City of Stonnington council.

The Park Hyatt in East Melbourne

In Melbourne, the hotel, considered one of the world’s leading hospitality brands, operates with the Grand Hyatt, at 123 Collins Street, the Park Hyatt, nearby, at 1 Parliament Square, East Melbourne and Hyatt Place in Essendon Fields. Earlier this year it announced another local Hyatt Place site was secured within a mixed-use project earmarked for 1690 Centre Road, Springvale.

Four months ago, it was reported Hyatt Centric had struck a deal with local developer Little Property Group to occupy a 280-suite city hotel, set to be developed at 27 Downie Street by 2020. Hyatt Centric operates from 20 other sites around the world.

The Alfasi Group is a diversified business which until recently was renowned in the steel construction and equipment hire industries.

Two years ago the company reportedly sought to boost its Melbourne property portfolio, appointing a broker to find five sites it could replace with hotels and offices.

In late 2016 it paid $24.7 million for a 3000 sqm block at 506-508 Church Street, in the Richmond pocket of Cremorne, setting a (then) record land rate of $8200 per sqm. About two kilometres east of the Melbourne CBD, this site is mooted to make way for a 20,000 sqm high tech office.

The 37-year old Alfasi Group employs more than 300 people in Australia, Hong Kong, Macau, China, South Korea, Thailand and Vietnam.

Based in Dandenong, it is directed by Avri Alfasi and his son-in-law, Gill Dvir.

Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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