Developer APH Holding sells hotel site at 702-706 Station St, Box Hill

A prominent developer is offloading a Box Hill site earmarked for a hotel development as it battles “economic challenges”.

702-706 Station St, Box Hill. Image: Commercial Real Estate

Economic challenges facing the construction sector have prompted a private developer to offload a Box Hill site that was slated for a towering Novotel hotel.

Insolvency firm McGrathNicol has repossessed APH Holding’s 1360sq m site at 702-706 Station St, Box Hill.

The Station St site was part of a landmark deal between APH Holding and Accor for a $100m Novotel Hotel in the centre of Box Hill.

702-706 Station St, Box Hill. Source Commercial Real Estate.

APH Holding have stakes in other development ventures across Melbourne’s east, most notably the multimillion-dollar Box Hill health and medical precinct Wellington Health.

In a statement, a spokeswoman for APH Holding said the site “did not align with our key strategic investment focus.”

“Given current economic challenges in the construction sector right now, we have refocused on property investment rather than development,” the statement reads

APH Holding said the company remains “committed to delivering our hero projects Wellington Health Box Hill … and Irving Domain Box Hill”.

An online listing said the sale says the “shovel ready development site” has an existing hotel permit for the construction of a 162-room hotel, standing up to 20-storeys high.

It’s located in the middle of “Melbourne’s second CBD” and across the road from Box Hill train station.

Real estate agents from Cushman & Wakefield Melbourne declined to comment on the sale.