The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JUST 15 DAYS UNTIL OUR FLAGSHIP CONFERENCE JOIN MORE THAN 550 ALREADY ATTENDING
JUST 15 DAYS TO GO UNTIL URBANITY-25 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
RetailStaff WriterWed 15 Nov 17

Starwood Capital Join Golden Age Group on Spring Street Project

starwood-1

Property developer Golden Age Group and affiliates of Starwood Capital Group, a global private investment firm, have signed an agreement to enter into a joint venture to manage the hotel component of Golden Age’s $600 million mixed-use development, 85 Spring Street, in Melbourne’s CBD.

Golden Age Group purchased the L-shaped site that fronts both Little Collins and Spring Street from Grocon in February 2017 for $75 million.

The company has redesigned the site and re-launched it as a $400 million, 39-level residential development. The project comprises 138 apartments and includes provisions for a $200 million hotel fronting Little Collins.

The proposed 26-storey hotel will offer 250 hotel rooms and high-end amenities including a bar, restaurant, conference rooms and gym, and is currently slated to open in 2020.

[Related reading: Golden Age Announce Launch of 85 Spring Street Tower]Jeff Xu, managing director of Golden Age Group said the developer is well-versed in Melbourne’s hotel market and is confident that this world-class partnership will deliver a premium hotel offering to the Melbourne market.

“Melbourne’s hotel market has shown continued growth in rates with strong, stable occupancy and increasing demand due to Melbourne’s extensive events calendar and growth in international tourism,” Xu said.

“We believe strongly in hotels as a well-performing asset class and in the continued strength of the tourism industry.”

Xu’s first project was a four-storey student apartment block in Melbourne's eastern suburbs in 2006, which he followed up with the Sheraton Hotel in Little Collins Street. Golden Age has also entered the Sydney market with residential developments in The Rocks, Double Bay, Waterloo and Macquarie Park.

The Starwood Capital transaction is subject to regulatory approval.

The premium hotel will be the latest in a long line of projects for Starwood Capital and its affiliates. Since Starwood Capital Group’s inception in 1991, the firm has raised approximately $44 billion of equity capital and currently manages more than $55 billion in assets.

Managing director for Starwood Capital Group in Asia, Kevin Colket, said that the decision to work with Golden Age Group was a combination of market confidence and the enduring reputation of the Jeff Xu's brand.

“Melbourne's hotel market achieves almost 90 per cent occupancy while demand continues to grow,"Colket said.

“With several new competitive hotel offerings planned for the Melbourne hotel market, we believe a hotel in this tremendous location with many park view rooms and adjacent to the vibrant city’s best retail, restaurants, and leisure offerings should perform very well."

[Related reading: It's Official: Victoria One Tops Out as Melbourne's Tallest Skyscraper]

Golden Age Group’s investment portfolio equates to a combined value of $4.2 billion with projects spanning the Eastern seaboard. The developer recently reported settlement success on stage one of Melbourne’s tallest residential building, Victoria One.

85 Spring Street will commence construction mid 2018 with completion expected towards the end of 2020.

ResidentialHotelAustraliaMelbourneFinanceSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
View All >
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
A hydrogen production facility, part of the Hydrogen Energy Supply Chain (HESC) project to ship hydrogen from Victoria to Japan.
Exclusive

Minister Intervenes, Approves Hastings Hydrogen Facility

Marisa Wikramanayake
Windsor Lutwyche Road DA hero
Development

Arch-Filled Commercial Strip Filed for Brisbane’s Northside

Phil Bartsch
The distinctive two-storey commercial building is earmarked for a long-vacant site along one of The River City’s busiest…
LATEST
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
3 Min
A hydrogen production facility, part of the Hydrogen Energy Supply Chain (HESC) project to ship hydrogen from Victoria to Japan.
Exclusive

Minister Intervenes, Approves Hastings Hydrogen Facility

Marisa Wikramanayake
3 Min
Windsor Lutwyche Road DA hero
Development

Arch-Filled Commercial Strip Filed for Brisbane’s Northside

Phil Bartsch
3 Min
Landcom The Joinery Annandale a build to rent development on the former westconnex site
Build-to-Rent

Landcom Takes Cover Off BtR Plans at Annandale

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/starwood-capital-joins-golden-age-group-to-manage-200-million-melbourne-hotel