After being quietly withdrawn from the market earlier this year, the fate of Barana Group’s Novotel St Kilda site has been announced, with property developer Tim Gurner inking a deal to develop the valuable site into a $550 million “luxury precinct”.
Greg Shand’s Barana Group listed the 5,791sq m site in February with a $110 million price tag.
The deal will see Gurner partner with the Barana Group and finance partner Alceon to redevelop the site into a larger precinct yielding up to $550 million on completion. Shand and Gurner were introduced by founding partner of Alecon Group Phil Green.
Shand acquired the hotel in 2012 for $55 million.
Barana Group secured a development permit for a three-tower, 236-unit project in 2017. The development team has said that architects will work to amend the design within the site’s approved height and planning parameters.
Greg Shand said that the decision to redevelop the landmark site was made possible by the development partnership inked with Gurner and Alceon Group.
“We do not take the decision to press the button to proceed to redevelop lightly and were only prepared to do so because of the skills and the vision that our partners have brought to the table.”
Gurner has commenced an international design competition with a brief outlining a revised design for 130 to 140 larger apartments along with a world-class wine bar or restaurant.
“St Kilda is undergoing a major revitalisation with a number of significant redevelopments underway that will place it firmly on the map as an international tourist destination,” Gurner said.
“Just as LA’s Venice Beach, Sydney’s Bondi Beach and Monaco’s coastline are known around the globe.”
A public launch of the project is planned for early 2019 with construction expected to commence later in the year.
The St Kilda Novotel will continue operation until construction is under way.