One of Melbourne’s earliest boutique hotel conversions – the Adelphi at 187 Flinders Lane – has sold to Mark Toma’s Virtical, until recently known as Core Asset Development Pty Ltd.
The freehold going concern is believed to be trading for nearly $25 million.
The incoming owner intends to refurbish the nine storey c1938 ex-warehouse, with 2865 square metres containing 34 suites, a cocktail bar and boardroom.
On a 366 sqm Capital City 1 zoned block, the property, which opened as the Adelphi in 1994, also features an activated rooftop with a glass bottomed infinity pool cantilevered over the footpath.
JLL’s Peter Harper and Nick MacFie with CVA’s Charles Cini and Ian Angelico were the agents; their expressions of interest campaign, which closed in late April, offered the hotel with vacant possession.
The vendor was a consortium comprising brothers Roger and Simon Ongarato with racehorse owner and Resimax founder Ozzie Kheir which bought it about 10 years ago then modernised it.
“We believe we can add great value to this unique property through a renovation and expansion of facilities,” Mr Toma said.
Mr MacFie added 12 offers came in with the transaction settled in two weeks.
“Quality Melbourne hotels remain very highly sought after by domestic and international investors,” according to the executive.
Mr Harper said “the Melbourne hotel trading market has now achieved a full RevPAR recovery and is expected to continue this growth trend, driven by its historical ability to absorb new supply, ever evolving calendar of world class events, infrastructure investment and population growth” (story continues below).
The deal comes 14 months since the Magid family sold Time & Place the Hotel Lindrum – another boutique guesthouse built into a mid-rise historic building at the city’s east end – permit-ready for a 30 storey tower with 77 guest suites and 68 build-to-sell apartments.
In 2021, meanwhile, Justin Hemmes’ Merivale outlaid $43m for Tomasetti House at 277-279 Flinders Ln, also with plans for a hospitality venue.
Virtical comes to Flinders Lane
Elsewhere in Australia, Sydney based Virtical developed North Parramatta’s ex-Waldorf and a portfolio of All Seasons assets – with 1500 rooms – in Alice Springs, Brisbane, Darwin, Double Island, Jabiru, Kakadu and Katherine.
All properties were later sold to Aurora Hotels or private investors.
Its development pipeline includes the Sapphire of Eden resort, on the southern NSW coast, and an eco-tourism resort with four buildings at Surfside, Batemans Bay.
The diversified group is also behind essential services, office, industrial and residential projects.
“We are at Virtical currently working with architects and designers to renovate the hotel in its original art deco style, echoing the company’s work with its Hotel Australasia in Eden, which has been restored to win an award from the National Trust last month” group Development director, Mr John Palasty, said.
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