City of Melbourne, Sydney-based pub giant believed to be negotiating sale of multimillion dollar Little Collins St carpark

The City of Melbourne is believed to be deep in negotiations to sell an eight-storey car park in one of the CBD’s most illustrious pockets to a Sydney-based pub giant.

34-60 Little Collins St property has been marked as ‘exclusively under offer’.

The City of Melbourne is believed to be deep in negotiations to sell an eight-storey car park in one of the CBD’s most illustrious pockets to a Sydney-based pub giant.

The 34-60 Little Collins St property, known as the Parkade building, has been marked as “exclusively under offer”, with Merivale Group boss Justin Hemmes believed to have been the front runner after preliminary negotiations in spring.

JLL commercial real estate agents working on the sale this week refused to discuss its particulars as did Melbourne’s Lord Mayor Nick Reece.

However, industry sources have suggested Mr Hemmes has offered $52m for the site, with one noting it would be a very good buy at the price. Other sources have put the potential sale price as high as $60m.

Industry sources suggested Justin Hemmes has offered $52m for the site. Picture: Richard Dobson

The reported price would put the sale significantly lower than another carpark, 380 Queen Street near Queen Victoria Market, which sold for a reported $115m in early November.

Sources close to that deal were stunned at the $52-60m offer thought to be on the table for the Parkade building, which is considered to be in a more desirable location.

Industry insiders said they would have also expected 34-60 Little Collins Street to sell for about $100m, with a going rate of about $30,000 a square metre for buildings in the area, even with the caveat of the existing lease held by real estate investment trust Dexus which does not end for 13 years.

Nearby 60 Collins Street, the Reserve Bank of Australia’s former Melbourne HQ, sold for $160m in 2018.

Merivale own and operate 79 eateries and venues around the country, most in Sydney.

While the business bought the Lorne Hotel on Victoria’s Surf Coast for $38m in 2021, it does not currently operate any venues in Melbourne.

The Little Collins St car park known as the Parkade is operated by First Parking and has already hosted a Thai restaurant with a cult following. It was used as a community arts hub during the pandemic.

It is likely that the eight-storey complex will be developed by its next owner, with a Capital City zoning near the Paris end of Collins St making it a prime location for an upgrade.

Early on in the property’s sale it was expected that the City of Melbourne would likely want to see affordable housing included in most forms of development.

On Thursday, while speaking at a property industry event hosted by Wingate and JLL about how to renew Victoria, the agency handling the sale of the car park, Mr Reece reaffirmed the City of Melbourne’s commitment to creating more affordable housing and touted that he had a record of 99 per cent of developments ultimately being approved in the city.

Originally published as City of Melbourne, Sydney-based pub giant believed to be negotiating sale of multimillion dollar Little Collins St carpark