APH Holdings has snapped up three adjoining sites near the city’s top tip – including the former Royal Saxon Hotel.
The amalgamation, 441-447 and 449-451 Elizabeth Street (pictured, top) and 139-141 Franklin, is costing over $40 million.
The buyer is intending a 34 level hotel and serviced apartment complex with ground floor retail – due for completion three years from now.
Colliers’ Oliver Hay, Leon Ma, Matt Stagg, Daniel Wolman and Trent Hobart represented the vendor, Goodyear Holdings, which offered the 1530 square metre site permit ready for a 32 storey apartment complex.
The seller in 2014 sought to replace it with a 50 floor complex with 455 dwellings.
APH spends again on Elizabeth Street
The acquisitions come five years since APH paid Ron Lazarovits and Max Fremder’s Selected Growth Property Trust $75.6 million for 422-440 Elizabeth St, on 3000 sqm across the road.
Formerly an RMIT campus, the 11 level building, completed in 1990, contains 13,000 sqm of area.
It is earmarked for an extension and repurpose as a medical hub which will operate under APH’s Wellington Health brand (story continues below).
Wellington Health is also behind a 20 level Box Hill essential services investment.
Combined with 440 Elizabeth St, the buildings are expected to accommodate about 100,000 sqm.
Unsatisfied capital: agents
Ten offers were received for the Goodyear properties, the agents said.
“The result of this campaign has yet again proved the insatiable demand for prime parcels of land in the Melbourne CBD,” Mr Hay added.
“There is a large amount of capital from investors and developers wanting to take advantage of the low interest rate environment,” according to the executive.
“High levels of interest…were further underpinned by the northern pocket location, which has recently seen a surge of major infrastructure projects including the new State Library and Parkville metro train stations, $450m Mirvac BTR Community Hub redevelopment, $250m Queen Victoria Market renewal project and $3 billion worth of residential, hotel and commercial developments”.
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