Jerry Schwartz says he is negotiating branding for the development. Picture: Renee Nowytarger Source: News Corp Australia
THE nation’s largest private hotelier Jerry Schwartz is bidding for a second Lend Lease-developed hotel, a $200 million multi-use tower slated for Melbourne’s Victoria Harbour at trendy South Bank, ahead of the property formally coming to market.
Last year Dr Schwartz paid $360m for the 616-room International Convention Centre Hotel Lend Lease is developing at Sydney’s Darling Harbour.
While coy on the details, Dr Schwartz confirmed he was part of a consortium negotiating to buy the Southbank hotel, with the development to include serviced apartments, residential units and substantial commercial space.
The medico has linked up with a couple of partners to make a play for the property, which he says is similar to the Darling Harbour hotel.
“We are still negotiating with several management companies as to what branding it will have, and also who the principal financier will be (not myself in this case),” Dr Schwartz said in a statement to The Australian. “It will also have a residential component, which will finance the hotel. These units will be offered to the hotel pool.”
It is understood that any bid will face stiff competition from a range of local and international investors, with exclusive agents Savills poised to bring the complex to market.
It is understood Dr Schwartz has held talks with hoteliers Accor and IHG to operate the hotel but has not yet done a deal.
The parties were also in discussions with overseas operators that had expressed a strong interest in investing in the Australian market due to the weaker dollar, sources said.
The hotel project is part of the redevelopment of the Victoria Harbour with Lend Lease and the Victorian state government.
Lend Lease is developing the $6.1 billion Victoria Harbour precinct in Melbourne’s Docklands. The 30ha site is the company’s most advanced mixed-use urban regeneration project in the nation and is about half complete.
While the company refused to disclose any details of the project due to its early stage, regardless of the operator chosen, the hotel would be a 4½ to five-star project with similar standards to the ICC Darling Harbour development, sources said.
The Melbourne hotel is expected to consist of up to 250 hotel rooms, 60 serviced apartments and a select number of branded residences. Each serviced apartment will be sold to the open market for at least $600,000. At least 10,000sq m of office space and up to 3000sq m of retail space is also planned.
Sources said the hotel would be ideal for corporate travellers because of its proximity to the convention centre.
A Lend Lease spokeswoman said: “We’re unable to comment on speculation regarding the future development of this site as we’re still considering options.”
