Melbourne-based developer Golden Age Group has lodged plans for a $76 million luxury hotel in the heart of Surry Hills.
The site, originally owned by Sydney identity and developer Michael Teplitsky, was set for a 19-storey mixed-use project comprising an 118-room luxury hotel and 62-apartments when the developer lodged plans in 2016.
Last year Teplitsky was embroiled in Australia's largest white-collar tax fraud syndicate involving former Tax Office deputy-commissioner Michael Cranston, but was not charged with any offence.
Jeff Xu's Golden Age Group acquired the 49-53 Wentworth Avenue site from the developer in January in a transaction facilitated by CBRE.
The new proposal, submitted by Golden Age last week, follows Teplitsky's lead with a 19-storey, now hotel-only development.
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Designed by Bates Smart Architects, the new hotel will house 287-hotel rooms and will include a ground floor restaurant and a rooftop bar.
The 743sq m site is the consolidation of two separate sites, the larger of which is occupied by a significant nine-storey Federation-period warehouse which will be retained as part of the new development.
The existing warehouse, known as Tyne House, will be incorporated into the new development while the smaller adjoining portion of the site occupied by a three-storey building, known as Karim House, will be demolished.
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Golden Age Group managing director Jeff Xu told The Urban Developer that Golden Age's latest project was a strategic move for the developer to expand its hotel portfolio.
“Launching a new lifestyle hotel brand into the Australian accommodation market will be pivotal to Golden Age Group’s future strategy,” Xu said.
“We believe strongly in hotels as a well-performing asset class and we look forward to growing this brand nationwide.”
The developer said that the new hotel operator for the Surry Hills development would be announced in the coming months.
Last year, Golden Age struck an agreement with US investment platform Starwood Capital to develop an upmarket $600 million hotel and apartment complex at 85 Spring Street in Melbourne's CBD, a site Golden Age procured from property giant Grocon.
Golden Age also secured the air rights to develop above The Glen Shopping Centre in Melbourne and plans to build "Sky Garden" a $450 million elevated residential project.
Construction will commence at Wentworth Avenue later this year with the hotel slated to be open and operating in 2020.