Cbus Property has acquired Spring Street's Mercure Melbourne Treasury Gardens Hotel from Pearl Hotels in an off-market purchase.
In a deal reportedly worth more than $70 million, the existing hotel will make way for a new residential tower, The Australian reported.
The acquisition comes following the unveiling of the $350 million, Bates Smart-designed, 35 Spring Street development.
"Cbus Property acknowledge the value of the site and the importance of great design, its impact on the city and that discerning purchasers expect world class architecture," the company said.
"With this in mind we are in the process of commissioning a design competition and are targeting lodgement of the planning application early next year, with development proposed to commence in late 2019.
“The proposed development will complement Cbus Property’s current and past residential projects in the Melbourne CBD, including Collins Arch Melbourne, which is currently under construction, and 35 Spring Street which was completed in April this year."The 1,270 square metre Spring Street site directly opposite the Treasury Gardens, will provide a "sequel "to Cbus Property’s 35 Spring Street and is intended to be a more boutique luxury development with large apartments.
Cbus property said the site's location makes it an obvious setting for another premium apartment building opposite the Treasury Gardens.
Located at the top end of the Melbourne CBD with uninterrupted views to the east toward the Melbourne Cricket Ground, the apartments will appeal to both downsizers and apartment upgraders, whilst enjoying the nearby food and entertainment precincts in the Paris End of the CBD.
The sale of the property was brokered by Gus Moors from Colliers International.