‘A joke’: Justin Hemmes’ plan for ‘boldest project’ in Melbourne CBD not popular
The so-called “King” of Sydney’s hospitality scene has a huge, “bold” plan for Melbourne. But there’s a huge problem coming.
The for sale sign outside a 1000-space car park in one of Melbourne’s most sought after pockets read: “The last major development opportunity in Melbourne’s core east end”.
Even that was under-selling it.
At the Paris End of the Melbourne grid is a piece of land that straddles Little Collins Street and Bourke Street and provides access to some of the city’s most in-demand venues.
It was a once-in-a-lifetime opportunity for a prospective buyer and one of Australia’s richest men just got it for what locals say is “way too cheap”.
Justin Hemmes, the so-called “King” of Sydney’s hospitality scene, this week announced that he had purchased 34-60 Little Collins Street and was planning “our boldest and most innovative project” to date.
The billionaire behind the Merivale hospitality and entertainment empire reportedly paid just $55m for the site and wants to knock down the car park to create a precinct that will include restaurants, cafes, bars, a live-music venue, retail, hotel accommodation and a sky garden.
Artist’s impressions for the project are spectacular.
MORE:Billionaire Hemmes’ Aus $60m carpark plan exposed
He says the location “is crying out for life and vitality at scale and of an international-level quality”.
But there’s a huge problem coming for the CBD as a result.
David Malaspina owns and runs one of the city’s most iconic and popular restaurants, Pellegrini’s Espresso Bar, less than 200m from the Merivale project site.
He told news.com.au the decision by the City of Melbourne to sell the land was “short-sighted”, “ridiculous” and “a joke”. He also said the reported $55m sale price was “way too cheap” and that council had lost sight of what’s important because it wanted to make a big splash in the short term.
“People in council, you’ve got an asset. You’ll never get it back,” he said.
“There was no consultation, no consideration. Our biggest gripe as traders (in the top end of the city) is parking.
“We are all for bringing people to the city, but you have to understand how the city works.
“We’re a driving nation. Where’s the consideration for people who need to drive in, how are you going to replace the 1000 car parks you’re taking away?
“How are you going to collect rubbish, get deliveries? Parking is already a disaster. My staff and customers all need to park, even hotels nearby used that car park for overflow.”
He added that without parking nearby, customers will go somewhere else.
“It’s a very short-sighted approach.”
The land at 34-60 Little Collins Street was not just being used for car parking. On the ground level was one of Melbourne’s most popular venues — Thai restaurant Soi38.
The appeal was world-class Thai street food but it stood out from the rest in one of the world’s greatest food cities because the experience was different.
Owners Chavalit “Top” Piyaphanee and his wife Phawinee “Tang” Suwankamnerd converted what was formerly an office space into an all-electric kitchen packed with metal tables and chairs that for 10 years routinely had lines around the block.
“After a decade of unforgettable moments, we’re sadly relocating due to the redevelopment at our current site,” the owners lamented on social media.
“Despite two years of fighting to stay, it’s time for a new chapter.”
Soi38 had been leasing the space from property giant Dexus. The current lease for the car park had 13 years left to run and council was receiving more than $450,000 a year to rent it out.
Which made its sale all the more baffling to local business owners who spoke to news.com.au.
Jason Marriner, chief executive of Marriner Group which owns the nearby Forum, Princess and Regent theatres, said it would be a shame to lose so much parking space.
“You would hate to lose the car parking amenity that is currently there,” he told Nine Newspapers in December last year.
“It also seems an odd way to sell a building, while it is under a lease and very constrained.”
Business owners nearby weren’t the only ones protesting against the sale of the land.
When the proposal went before the City of Melbourne, 34 per cent of respondents opposed the sale, 23 per cent were neither for or against and 43 per cent supported the move.
Council minutes showed that the “most frequent rationale for opposing the sale of the property was on the grounds that the Land could be used for alternate uses to better serve the community in the future” and “there was also aversion to the idea that properties could be purchased by developers”.
Well, developers have it now and the plans are astronomical.
In a statement sent to news.com.au, Mr Hemmes said: “This is our boldest and most innovative project that we have embarked upon to date, a vision that I’ve been conceptualising and refining for a decade.
“(It) offers such an incredible opportunity to do something so special for the people of Melbourne.”
City of Melbourne Lord Mayor Nick Reece told news.com.au: “Justin Hemmes is the king of Sydney’s hospitality industry — and it’s a huge vote of confidence that Merivale has chosen to invest in Melbourne.
“This entertainment precinct will be right on the doorstep of Melbourne’s world-class theatre district and create hundreds of jobs and generate millions of dollars for the local economy.
“More than just a typical pub or hotel, Merivale’s ambitious vision showcases our love for culture, music, fine dining and fitness — offering an iconic experience for residents, workers and visitors day and night.”
Mr Hemmes, who is responsible for one of Sydney’s biggest clubs, Ivy nightclub, has been working on the concept for the Melbourne site for more than a decade.
He already owns Tomasetti House on nearby Flinders Lane which is currently under development and will include an underground bar, two levels of dining and a rooftop bar.
Merivale hopes to have that venue open in early 2026.
He also owns Kantay House on Meyers Place which is next to the car park at Little Collins Street.
His latest purchase at the very least means one of the city’s most popular venues has had to uproot and move elsewhere.
It could breathe life into the area, but it could just as easily make life more difficult for those already there.