Kerry Stokes flagship to develop five star Yarra-side hotel
Flagship Property Holdings, a company backed by Kerry Stokes has teamed up with the Plenary Group to develop a new five star hotel at the Melbourne Convention and Exhibition Centre.
The $300 million project will extend the convention centre, creating a new 331-room hotel, and a car park.
The plans were unveiled by acting Victorian premier James Merlino, Plenary chairman John O’Rourke and convention centre chief executive Peter King.
Mr Rourke said he was pleased to see the project, which was announced two years ago, finally start.
“This expansion was planned for during the design stage of the first Melbourne Convention Centre development we completed in 2009, so it is great to be finally realising what we envisaged back then,” Mr Rourke told The Australian.
Plenary’s role is as sponsor, investor and financial arranger for the overall project. The company and its partners will invest over $100 million.
Mr Rourke said the project would see the convention centre attracting attract larger and more diverse events to Melbourne. It would also would increase business and trade activity in the South Wharf precinct.
Contractor Probuild has been appointed to construct the MCEC expansion, hotel and car park.
The works are expected to be completed in the first half of 2018.
The precinct has attracted a lot of developer interest lately with James Packer’s Crown casino this month unveiling plans for a $1.7 billion hotel and apartment complex that would stretch out 323 metres tall. Crown’s Queensbridge Hotel Tower would include a 388-room offering.
It also comes at a time when Flagship has been stepping up its development activity around the country.
Last month it appointed Watpac to build the $100 million Kodo apartment development in Adelaide. These apartment complex is Adelaide’s tallest residential development, and its rooftop features the city’s tallest “sky garden”.
Flagship has also developed the Sunday Coventry Street Apartments in Melbourne.
by Leon Gettler, May 30th 2016
