Merivale, the Sydney hospitality group owned by billionaire Justin Hemmes, has secured its third Victorian property, continuing its march into Melbourne.

The mogul has reportedly purchased Kantay House, at 12-18 Meyers Place in the city. The premises currently house Argentinian grill San Telmo, cocktail bar Lily Blacks, and Pizza Pizza Pizza, a spot for late-night slices.

The Paris end property becomes part of a Victorian portfolio that includes the Lorne Hotel, purchased for $38 million, and Tomasetti House on Flinders Lane, bought for about $40 million, both in 2021.

The Lorne site now houses Totti’s, a bright, fun transplant from Sydney serving a puffed bread that’s even more beguiling than the ocean view. Plans for Tomasetti House are yet to be revealed.

Original price expectations for Kantay House surpassed $15 million but interest was strong and pundits speculated that the sale price could go considerably higher.

After buying Tomasetti House, Justin Hemmes told this masthead, “Melbourne is a very special city, with a unique energy and an inimitable soul. Its local hospitality industry is one of the best in the world ... we are honoured to open our first venue in Melbourne, and cannot wait to work alongside so many local industry greats.”

The most recent sale was reported by property insider Marc Pallisco on his realestatesource.com.au site.

Merivale declined to confirm the purchase or be drawn on plans for the Meyers Place site. Current tenant and San Telmo co-owner Renee McConnell was tight-lipped, too. “We’re still around for nine more years at least,” she said.

Designed by notable architect Harry A. Norris, Kantay House was built in 1940 as two factory spaces, housing milliners, tanners and leather goods dealers. The Melbourne Planning Scheme considers the two-storey building a significant site, expressing interwar Functionalist style.

Merivale is one of Sydney’s biggest hospitality groups, operating more than 70 venues across NSW, including Mimi’s, Totti’s, Coogee Pavilion and Mr Wong.

The Age’s chief restaurant critic, Besha Rodell, is watching with interest.

“Merivale is so good at what they do, so any individual restaurant is going to be good and fun,” she says. “But what Melbourne has over Sydney is cool, independent restaurants. What I wouldn’t want is for the culture of Melbourne restaurants to change so that we are more excited by the big group places than the independent places with personality.”