A site approved for a hotel in Melbourne’s inner south-east has come to market and is expected to fetch around $10 million.
The property, held by development company Mantello Holdings, at 1-3 Harcourt Parade, Cremorne, has DA approval for a 96-key hotel development.
The 785sq m site currently has income from carparking and a billboard—with views of it from Punt Road and the M1, it is one of Melbourne’s most prominent billboard sites, allowing for dual income, according to the agents.
CBRE’s Scott Callow and Aston Commercial’s Jeremy Gruzewski are managing the sale via an expression-of-interest campaign due to close on November 16, 2023.
“Cremorne is the ideal location for a new boutique hotel,” Callow said.
“Close to Melbourne’s sport and entertainment precinct as well as the CBD and its more recent office developments, the hotel would be able to capitalise on the corporate and leisure market.
“The rather unusual investment income from a hotel operation and substantial digital signage makes this a development with added appeal, and we are expecting interest from onshore and offshore investors and hotel operators.”
Gruzewski said there had been significant redevelopment of commercial office buildings in Cremorne, increasing the workday population.
“Add to this the proximity to Melbourne’s sporting precinct and it makes it the right time for a hotel to service the demand,” he said.
Last month in the same suburb and 20 years after he acquired it, a Sydney businessman put an 8000-square-metre-plus office site on the banks of the Yarra River up for sale.
Industry commentators at the time said the island site at Cremorne—with four street frontages and commanding views of the Melbourne cityscape—would fetch $80 million to $100 million.
In May, Time & Place and joint-venture partner MaxCap Group were greenlit for their nine-storey office tower on a 2678sq m site at 75-119 Cubitt Street, while in April the City of Yarra council approved Riverlee’s nine-storey office tower at 99 Green Street.
And in January, plans for a 12-storey mixed-use building with ground-level commercial and a hotel above short-stay accommodation were filed for 14-18 Cremorne Street.
