BPM plans new Melbourne hotel
Developer BPM is looking to build a $12.35 million hotel right in the centre of Melbourne.
BPM acquired the two-storey commercial building from Malaysian developer Asia One which made a tidy profit on the 350 square metre site at 33 King Street.
Back in March 2014, Asia One picked it up for $8.35 million and secured a permit for 120 apartments across 29 levels. Asia One was established by Malaysian developer Beng Hing Ng and his family, working with fellow countryman Roger Lim Swee Kiat, also an experienced developer.
"We are excited about this acquisition, which will allow BPM to make a significant architectural contribution to the evolving King Street precinct." BPM founder Jonathan Hallinan told the Australian Financial Review.
"The central location of the site positioned in close proximity to CBD restaurants and retail, and Southern Cross and Flinders Street stations, make it an attractive proposition for a new hotel offering."
For BPM, it’s an important development, adding $70 million into its pipeline of projects.
These include projects in South Melbourne, Southbank, Richmond and in Brisbane's West End.
BPM paid extra because sites with an existing high-rise permit in place command a premium.
All of that is because of planning authorities introducing plot ratio rules that put a limit on height and density in the CBD and Southbank.
As a result, some developers like Asia One are now deciding to flip rather than take on the development risk.
The new building will be designed by architecture firm Elenberg Fraser.
With a launch in late 2016, construction is expected to start in December.
BPM is now planning to apply for an amended permit with the Melbourne City Council, getting the green light to make alterations to the previously proposed façade.
It’s now looking at a revised scheme for a mixed-use development comprising a luxury hotel, café and restaurant, plus limited penthouse apartments.
by Leon Gettler, September 1st 2016
