Fragrance snares another Hobart site
Fragrance Group has snapped up Hobart’s long-vacant Welcome Stranger, formerly known as the Freemasons Hotel.
The Singapore-based developer is speculated to be paying about $4.4 million ex-GST, sources say, for the 1332 square metre holding incorporating 58 Harrington Street and 59 Davey – marketed as Saint David Junction.
The seller paid $5.5m in late 2022 – a particularly buoyant year for the hotel sector.
That vendor was Melbourne based Hexa Group which bought the asset in 2019 with plans for a 13-level, or 45 metre, residential tower with 52 dwellings – a proposal rejected by the City of Hobart in then at appeal by the Resource Management and Planning Tribunal, for, amongst other concerns, height and heritage.
The deal comes six weeks since we reported North Hobart’s historic ex-Soundy’s department store, c1883, and neighbouring c1913 State Theatre – now amalgamated as a Reading cinema – sold to an interstate investor.
Fragrance buys another Hobart site
The Welcome Stranger site failed to sell after an expressions of interest campaign closing last June.
Another EOI was listed earlier this year via Stonebridge’s Justin Dowers with Elders’ Richard Steedman and George Burbury.
A high-rise hotel development is expected.
Fragrance owns a nearby property – 28-30 Davey St – where it was in late 2022 permitted to build a 13 level, 152-key, 5-star hotel.
It also controls the ex-Myer store at 179 Macquarie St – approved last year for a nine storey, 206 key hotel, initially to be a Novotel but now a Double Tree by Hilton.
Four years ago, group sold Blackstone a 3009 sqm block at 2-6 Collins St, also facing Brooker Highway and Macquarie St, in town, for $9.6m after failing to win permission for a 15 floor, 495-key hotel.
Also today we are reporting Steven Shoobridge’s Star Group has bought another Queensland hotel – outlaying $24m.
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