Sources say developer Southraw has agreed to pay between $7.5 million and $8 million for the building at 27 Little Collins Street, which is likely to become a high rise apartment building and luxury hotel.
SOuthraw had agreed to pay $9.3 million for the site last Apriland paid a $500,000 deposit, but failed to settle after contract variations and extensions. The 128-year old Naval & Military Club went into administration in February.
Prior to its collapse, the Naval & Military CLub was unsuccessful in an attempt to remove a caveat Southraw had over the property’s title, that prevented it from resale.
Under development plans for the site, the Naval & Military Club would occupy a small portion of a new 24-level apartment and hotel development. Funds used from the sale of the property would pay bank debt.
Representatives for Southraw and NAB were unavailable for comment. Romanis Cant’s Simon Nelson is administrator for the Naval & Military Club.