The Naval & Military Club will sell its city headquarters of 45 years after obtaining a permit for a 24-level mixed use building.
The association could bank about $14 million, according to sources.
It paid $170,000 for the 1162 square metre property in 1963 and opened a two level complex four years later.
The latest proposal was opposed by the Melbourne Club which owns 36-50 Collins Street, and claimed any airspace of the NMC’s site could affect the condition of a London Plane tree in its yard.
It allows for a 220-room hotel, apartments, spool, library, restaurant and retail.
Steve Pilmore, executive chairman for the vendor, said it could pre-commit to a three level replacement clubroom within any redevelopment.
The outgoing building at 27 Little Collins St contains two bars, two squash courts, a gym, billiards room and garden terrace.
Jones Lang LaSalle’s Andrew Wood and Lachlan Thompson are representing NMC .
In March 2007, Queensland’s Devine Limited paid $18m for a 2,000 sqm site at 131 -135 Bourke St, nearby.
That group later flipped it to Singapore’s Ascott Group for $136m after pre-committing an operator to a 398-suite complex now under construction.