Merivale founder Justin Hemmes has taken the first step with his plans for hospitality development in the centre of Melbourne.
Hemmes has closed a deal to buy the site, a carpark in the CBD’s Paris End from the City of Melbourne Council. Industry sources suggested he paid around $60 million for the 3885sq m site.
The city endorsed the purchase offer in the confidential business part of a council meeting. The proposal to sell the site was approved in May of 2024.
Merivale has proposed Parkade, a hospitality complex with a hotel and retail spaces, for the site at 34-60 Little Collins Street.
The site at the north-west corner of Meyer Place has an eight-storey carpark with 940 bays leased to Dexus.
Merivale will need to buy Dexus out of the leasehold, which expires in mid-2037 ,prior to changing the use of the site. Dexus valued the leasehold at $11.3 million in June of 2024.
Parkade is expected to have an estimated end value of $250 million and include a hotel, day spa, gallery and several restaurants.
The site is opposite the Harry Norris-designed Kantay House, which includes the San Telmo Bar that Hemmes bought in August, 2023 for $15 million.
“This entertainment precinct will be right on the doorstep of Melbourne’s world-class theatre district—and create hundreds of jobs and generate millions of dollars for the local economy,” City of Melbourne Lord Mayor Nicholas Reece said.
JLL’s Josh Rutman and Piper Dedrick managed the sale once the council listed the carpark in September.
The site is reported to have been valued at $55 million.
The deal will settle in June, according to the City of Melbourne Council.
“Funds from the sale will be reinvested into council’s capital works program to deliver important community infrastructure for Melbourne,” a City of Melbourne spokesperson told The Urban Developer.
