‘Will do what it takes’: Exclusive club’s plan to block Merivale’s Melbourne CBD plan

One of Melbourne’s most exclusive clubs “will do what it takes” to block Sydney hospitality king Justin Hemmes’ plan for his “boldest project yet”.

One of Melbourne’s most exclusive gentlemen’s clubs has moved to block billionaire restaurant baron Justin Hemmes’ contentious plans to turn a car park in one of the city’s most sought-after pockets into a “hospitality, entertainment and creative wonderland”.

Mr Hemmes, the so-called “king” of Sydney’s hospitality scene, purchased 34-60 Little Collins Street in February for $55 million.

Transforming the eight-storey, 1000-space car park – located at the Paris End of the Melbourne grid – into a multi-level precinct with restaurants, cafes, bars, a live-music venue and hotel accommodation, is his Merivale empire’s “boldest and most innovative project” to date.

The location, which straddles Little Collins and Bourke Streets, “is crying out for life and vitality at scale and of an international-level quality”, the 52-year-old has said.

Mr Hemmes’ grand vision has already caused uproar among Melburnians, including the owners of some of the CBD’s most iconic establishments.

This week, it hit a new roadblock when The Age reported the Melbourne Club will use a long-dormant financial contract to acquire a 50 per cent stake in an existing lease of the Little Collins Street car park, blocking the precinct’s construction.

Merivale did not respond to a request for comment.

Renders of Merivale’s proposed development at 34-60 Little Collins Street, Melbourne.

The heritage-listed club house – home of Melbourne’s business leaders for more than a century – sits metres from Mr Hemmes’ proposed redevelopment.

Members of the conservative establishment voted on March 31 to spend $5.5 million buying half the lease, owned by Dexus. The ASX-listed professional property investor has control of the site until 2037.

Per The Age, Dexus was expected to negotiate a financial settlement with Merivale to terminate its lease, enabling the project to go ahead once council granted planning approval.

A source familiar with the vote who was not authorised to speak on behalf of the Melbourne Club told the paper it “will do what it takes” to stop Mr Hemmes’ plan.

“They’re more than willing to stand up to him … They’ve definitely got the funds, and they also have access to some of the city’s best lawyers if it comes to that,” they said.

Justin Hemmes has described the development as his ‘boldest project yet’.

City of Melbourne Lord Mayor Nicholas Reece has been enthusiastic in his support of the Merivale development, calling Mr Hemmes “the king of Sydney’s hospitality industry”.

“It’s a huge vote of confidence that Merivale has chosen to invest in Melbourne,” Mr Reece told news.com.au in March.

“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 in 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.”

In a statement at the time, Mr Hemmes said he had been “conceptualising and refining” the vision “for a decade”, adding: “(It) offers such an incredible opportunity to do something so special for the people of Melbourne.”

Mr Hemmes has been described as ‘the king of Sydney’s hospitality industry’. Picture: Mick Bruzzese

Pellegrini’s Espresso Bar David Malaspina has voiced his dissent. Picture: Wayne Taylor

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 last month the decision by the City of Melbourne to sell the land was “shortsighted”, “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,” Mr Malaspina 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.”

Originally published as ‘Will do what it takes’: Exclusive club’s plan to block Merivale’s Melbourne CBD plan