$30 million hotel bid for former Myer store revived as site buyer unmasked

The buyer of a key Hobart CBD site with a pre-approved development application for a nine-storey hotel can be revealed.

The site at 179 Macquarie St, Hobart has a pre-approved development application for a nine-storey hotel and has been bought by the Fragrance Group. Picture: RICHARD JUPE

THE buyer of a key Hobart CBD site with a pre-approved development application for a nine-storey hotel can be revealed.

The former Myer homewares store at 179 Macquarie St, which has development approval for a $30 million hotel, was sold in August last year to unknown buyers.

Knight Frank chief executive officer Scott Newton said at the time four parties pitched to purchase the site, but the vendor did not want to divulge the price or the buyer.

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The Mercury can now reveal the site was bought by Singaporean developers The Fragrance Group for $9.35 million.

The Fragrance Group’s previous hotel proposals have caused considerable controversy and prompted discussions about the desired future direction for Hobart buildings.

They have proposed a 424-room 126m high hotel on the Hobart waterfront — although that plan has been shelved.

The company also applied to build 12 and 13-storey towers in Elizabeth St, North Hobart, one housing a 214-room hotel and the other 91 apartments.

Three levels of underground parking for nearly 200 cars is also included, along with a restaurant and function rooms.

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An artist’s impression of Fragrance Group’s twin towers hotel proposal in North Hobart. Picture: SUPPLIED

Fragrance also lodged an application for a $60 million, 256-room hotel with an 800-seat conference room in Collins St, but this was refused by the Hobart City Council in January.

The only hotel the company has had approved by council and built in Hobart was its very first proposal — now the Ibis Styles Hotel located directly next door to its latest acquisition in Macquarie St.

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An artist’s impression of the previously approved $30 million hotel proposed for 179 Macquarie St. Picture: SUPPLIED

A planning application for 179 Macquarie St was lodged with the HCC yesterday for “demolition and new building for hotel with cafe and function centre and associated infrastructure works”.

It is listed as under assessment, but no further detail is available at this stage.

Plans for the development at the site had been resurrected after the new Hobart Interim Planning Scheme came into force changing height restrictions.

The approved application is for a nine-storey, 202-room hotel, ground floor cafe/restaurant, conference facilities and below-ground carpark.

It was approved by the HCC’s planning committee in March last year.

The decision was appealed against, but was resolved by consent agreement, with a condition added about external cladding.

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Fragrance Group’s proposed hotel in Collins Street which was rejected. Picture: SUPPLIED

In 2015 a development application by Ressen Property Group — based in Sydney — to build a 225-room hotel on the site was approved by the Hobart City Council, but was later overturned by the tribunal after an appeal from nearby businesses.

The approval was appealed on height and plot ratio grounds by Sunset Rock Investments Pty Ltd and JK Tasmania-Hobart Pty Ltd, which own the neighbouring former Hutchins school building.

JK Tasmania-Hobart also shares directors with Fragrance Tas-Hobart Pty Ltd, now owners of the site.

The Fragrance Group has been contacted for comment.