Cbus Property has completed the purchase of the Mercure Treasury Gardens Hotel on Spring Street in Melbourne’s CBD in a $70 million plus deal, with the intention to redevelop the site into a modern, glitzy apartment tower.
The super fund developer, one of Melbourne’s pre-eminent developers, bought the property off a subsidiary of the Abu Dhabi Investment Authority (ADIA), who holds the freehold as part of a 31-asset portfolio it acquired in an $800 million deal with Tourism Asset Holdings Limited four years ago.
The current 4 star Mercure Hotel will remain running while Cbus Property begins the planning phase of its second Spring Street tower. They will likely lodge planning applications early next year, meaning that a residential project could well be underway by late 2019.
Clocking in at 1,270 square metres, 13-21 Spring Street overlooks the Treasury Gardens and is located in the same vicinity as another Cbus Property building, the stunning, upmarket 35 Spring Street skyscraper on the Paris End of Collins Street, which features 43 levels and 241 residential apartments. The recently completed project sold out in rapid time.
The proposed development is a logical step for Cbus Property, which specialises in residential projects in Melbourne. Along with their two Spring Street projects, they are currently working on the New-York style, $1.25bn Collins Arch residential, commercial & hotel twin tower building, the Volaire apartments in West Melbourne and another upscale apartment development (through a joint venture with Brookfield) in East Melbourne.
With panoramic views overlooking Melbourne’s West – the MCG, Richmond and beyond, Cbus Property believes they will generate strong interest for this luxury residential project from past purchasers and new purchasers alike.
Colliers International’s Gus Moors brokered the off-market deal between the two parties.
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