As many as 40 developers are circling a $155m partially completed Russell St hotel
A partially completed Melbourne hotel development placed into voluntary administration is understood to have about 40 Australian and international developers vying for it.
About 40 Australian and international developers and owner occupiers are understood to be vying for a $155m partially completed hotel development in Melbourne’s Russell St, after its financiers called in voluntary administrators last month.
The administrators of the Chinese-controlled Triple MMM Holdings, McGrathNicol partners Matthew Hutton and Matthew Caddy, said there has been strong interest in the sale and/or recapitalisation of the company even though the city has a number of hotel developments under way.
Melbourne non-bank lender Merricks Capital, which is chaired by Adrian Redlich, last month appointed administrators to the project, which comprises 189 rooms, a restaurant and a couple of ground-floor and rooftop bars.
Merricks Capital is providing funding until December 31 according to the McGrathNicol statement. The project is expected to be completed within 12 months and is believed to have attracted interest from significant developer groups ahead of expressions of interest closing on Friday.
“Melbourne Place is a quality development asset in a prime location that has appeal to a variety of potential owners and operators. Our focus is working towards a quick sale and/or recapitalisation to secure the best possible outcome for all parties,” Mr Hutton said in a statement on Tuesday.
The project is being offered for purchase with vacant possession.
JLL Hotels managing director Peter Harper and JLL’s Josh Rutman, who are handling the campaign, said that on completion Melbourne Place would be positioned on one of the best locations for a hotel in the CBD, surrounded by premium-grade office buildings, world-class tourist amenity and average daily rate-leading hotels such as the QT, Grand Hyatt and Sofitel.
“Even with the number of new hotels that have entered Melbourne in recent years or are currently under construction, only one other is in the Eastern Core. To use a monopoly term, this is Mayfair,” Mr Harper said.
“Another fundamental that really stands out about Melbourne Place is the fact it is stand-alone freehold, which is exceptionally rare. The majority of high quality hotels in the city are stratum titled or leasehold.”
The design has been inspired by some of the best independent, experience-led, hotels in the country, he added.
Triple MMM Holdings is directed by Bozhong Li.
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