Confirmed! The Block makes octagonal South Yarra hotel reservation
The eight level, 34-room octagonal-shaped Hotel Saville in South Yarra has been purchased by the production company of Channel 9’s The Block.
The $6.25 million sale had been suspected since June, but confirmed only late last week with the Watercress Production Pty Ltd settlement documents seen by Property Observer.
The $6.25 million purchase through Colliers International accompanied the $1.1 million purchase of the nearby 446 square metre vacant block at 270 Punt Road which was used as a hotel car park.
The property was sold with a permit for 51 apartments, but could be possibly expected to be converted into eight luxe apartments with common areas.
The 3.5 star Hotel Saville of South Yarra, with first floor restaurant, which had been trading under various names since its opened in the early 1970s, closed in August. Quest Windsor was recommended on the sign on the front door.
With 360 degree views, the property is located at 1-5 Commercial Road, near busy Punt Road.
The property was marketed by Colliers as a "premium opportunity well suited to residential developers, hotel/motel developers, home owners and investors".
There was brief consideration of its conversion into strata apartments in 2005 by PAZ Investments. Apartments were marketed from $149,000. In 2010 Paras Bros had an option to purchase. In 2011 there was a $16 million proposal by Longreach Investments that involved construction of a new SJB-designed 10 storey building comprising 74 dwellings, 77 car parking spaces and 84 bicycle spaces along with a convenience shop and food and drink cafe with 77 seats that did not get approval.
Watercress's next series of The Block is on Darling Street, South Yarra.
Their Brenchley Architects plans were lodged for a $2.4 million development application for the South Yarra property (below). It seems set to be the location of the 10th series which will follow the recent The Block Glasshouse series in Prahran.
The current 12-unit block at 27 Darling Street, South Yarra, will be four luxury triple-storey townhouses.
Watercress paid $5.7 million for the Darling Street site.
