V-Leader has quietly purchased seven neighbouring buildings including the historic Continental Hotel, at the south east corner of Lonsdale and Russell streets.
The off-market deal for the 1137 square metre amalgamation is understood to be worth over $50 million.
The vendor, Longriver, acquired it in 2019 for $49.2m, it was speculated, for a major skyscraper.
V-Leader, led by Andy Zhang is set to develop just that, in a mixed use project.
Across town, in April, the group won permission to construct a 40 storey commercial tower at 600 Lonsdale St, on the north west corner of King, replacing the low rise Lonsdale Court strata office complex.
Last August, the company outlaid $22m for South Yarra’s historic Hotel Claremont, which came permit ready for a 12 level extension.
Next chapter for Heartbreaker bar
Covering 157-173 Lonsdale St, V-Leader’s newest holding includes the four storey Continental, which trades as the Heartbreaker bar, a two level extension facing Belman St, and smaller buildings.
The speculated sale price reflects a circa one per cent yield (story continues below).
“We’ve spent a considerable amount of time analysing the various options and given the site’s proximity to an abundance of amenity, the location instils an opportunity for a variety of uses,” Mr Zhang said.
“We’re considering a mixed-use project with the exact outcome to be solidified over the coming months,” according to the executive.
Mr Hay added there is a significant capital chasing CBD investments.
“Demand has flooded in from local, interstate and offshore groups and created a competitive atmosphere amongst buyers seeking quality land parcels, with considerable opportunity waiting to be unlocked,” he said.
The sale comes six months since Longriver banked $9.4m for a 280 sqm A’Beckett St block offered permit ready for a nine floor retail building.
Elsewhere in the CBD the company is replacing the former Melbourne Theosophical Society headquarters with a 12 storey hotel penned by Kennedy Nolan.
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