John Halikos’ Mitchell Street upgrade plans as Health House goes under hammer

A prominent Mitchell Street building has been sold, with more to follow in coming months sparking hopes for CBD revitalisation. Read who bought what.

John Halikos’ proposed new Mitchell Street hotel.

Veteran Territory builder John Halikos is set to transform an ugly-duckling Mitchell Street box into a luxury new Darwin CBD hotel.

The sale of the five storey Health House building at 87 Mitchell Street was finalised on Monday by Peter McVann from agents Knight Frank for $7m, with developer JH Group lodging an application to repurpose the building from commercial office space to hotel-motel suites.

The application proposes reconfiguring floor levels with a basement office, gym and 34 car parks and 10 ground-floor motel suites with 11 car parks, alfresco cafe, office, board room and reception.

Health House has been sold for $7m.

The first floor would contain 23 motel suites with an additional 54 suites on the second to fourth floors delivering in total 87 new luxury hotel suites to the Darwin market.

And the builder’s CBD expansion plans don’t just end with Health House, with the company in the process of buying the Darwin Poinciana Inn across the road at 84 Mitchell Street.

With settlement on that property and the adjoining Noodle House restaurant expected in early 2025, the company is remaining tight-lipped about its long-term plans for the precinct.

JH Group’s executive legal officer Elizabeth Halikos said the company was excited about its future plans.

“The Halikos family is very excited about the potential of these two sites,” she said.

“Though we are unable to disclose further details at this time, we look forward to sharing our plans in due course.

JH Group is in the process of buying the Poinciana Hotel Darwin

“What I can share is that both projects will uphold John Halikos’ longstanding legacy of building, investing in, and supporting the local community.”

John Halikos and his business partner Shane Dignan separated their interests in the Halikos Group earlier this year after three decades as the Territory’s construction industry leaders.

Mitchell Street’s Health House will be transformed.

Dignan’s company DCOH has remained in the construction and hospitality space while John Halikos, who retained some of the group’s hospitality assets including Crab Claw Resort and H on Mitchell Hotel, has been planning his next move.

DCOH, in partnership with Colemans, has spent in excess of $25m so far developing The Cinema Collective complex at the old Duck’s Nuts-Hoyts Cinema complex on Mitchell Street.

When Ducks Nuts stopped trading in 2017 as the NT economy descended into recession, many blamed it on the shutdown of the old Health House building and the departure from Mitchell Street of dozens of thirsty office workers.

Mr McVann said JH Group had 5200sq m of gross lettable area to convert to a hotel.

“There were plenty of inquiries nationally and locally for 87 Mitchell, but it’s just good to see people investing in that precinct which has been neglected for a decade or so,” he said. “Sweethearts and Flicks are over the road and then with JH Group’s rejuvenation it’s private money going into private property.

“It’s the first time for about a decade that private money is going into a development not underpinned by government leases.”

Originally published as John Halikos’ Mitchell Street upgrade plans as Health House goes under hammer