Melbourne developer Capital Alliance has appointed Crema Group as the builder on its $200 million mixed-use project in Fishermans Bend.
The 40-storey tower, set to feature a 200-room hotel by Marriott, will also see 100 one, two and three bedroom apartments delivered to the former industrial precinct.
Construction works commence this month on the site, located at 199-201 Normanby Road, with Capital Alliance chief executive Mohan Du expecting the development to be completed by early 2021.
The project marks the first AC Hotels by Marriott in Australia, as well as the first hotel in the Fishermans Bend precinct.
Du said the construction deal with Crema is worth around $110 million, with the residential component of the project having sold 40 apartments to date.
“This appointment strengthens our view that although economic fundamentals have drastically changed for the industry, there is still life for projects that are carefully thought through,” Du said.
Du, who founded the company in 2012 while in his late twenties, got his start in the developing space after purchasing a Box Hill site that had gone into receivership.
Capital’s second hotel deal with Marriott follows on from the $250 million Marriott Docklands development designed by DKO, and hotel project Peppers — the first five-star hotel in Melbourne’s Docklands.
Marriott International Asia Pacific senior director Richard Crawford said Marriott’s ability to gain new quality hotel footholds was dependent on forging strong relationships with developers.
Capital Alliance purchased the Fishermans Bend site for $13.5 million in 2017.
The Victorian government, which has a 30-year plan for the development of the precinct on Melbourne’s CBD fringe, estimates that Fishermans Bend will be home to 80,000 residents and 80,000 jobs by 2050.
The 480-hectare urban renewal precinct spans two municipalities across the City of Melbourne and the City of Port Phillip.