Buyers Line Up for Unfinished Melbourne Place Hotel

Administrators have received about 40 expressions of interest on the sale of a company that owns the Melbourne Place hotel development.

McGrathNicol partners Matthew Hutton and Matthew Caddy said interest had been strong for the sale or recapitalisation of Triple MMM Holdings.

Melbourne Place hotel is under construction with Merricks Capital agreeing to extend its debt facility to enable the ongoing program of work until the end of the year. 

Merricks Capital tipped the developer into voluntary administration over payment defaults. Merricks Capital is the senior secured lender of the project, and had made available a $105-million facility, of which around $40 million was drawn.

Once completed the 15-storey, 189-key boutique hotel would be valued about $155 million.

McGrathNicol’s Hutton said the funding would support the ongoing operations of Triple MMM Holdings while the sale process was undertaken. 

“We are pleased with the strong interest from prospective buyers and capital partners at this early stage in the process, having received approximately 40 expressions of interest to date,” Hutton said.

“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.”

McGrathNicol is working with stakeholders, including the builder Adco Constructions, to seek the best possible outcome, according to Hutton. 

The project was due to be completed at the end of 2023. 

Following the urgent expressions of interest campaign interested parties will be invited to submit non-binding indicative offers by 5pm, December 9.