Vinci Partners director Frank Vinci, who is selling the Liberman family’s Station Hotel in Greville Street, Prahran, and the Metro nightclub in Bourke Street, said developer interest was stronger than owner-occupier interest for both properties.
"Look at the Station Hotel, which has a 30-metre frontage to the prime retail core of Greville Street," said Mr Vinci. "To developers, that’s the equivalent of six shop fronts, so a price of, say, $4 million or thereabouts, which may be regarded as high for a passive hotel, is relatively cheap for the future redevelopment potential it offers."
A restrictive Residential 1 zoning preventing commercial redevelopment is one reason insiders say the Grand Hotel in Burnley Street, Richmond, failed to sell at auction yesterday. The property was passed in at $3.91 million.