Melbourne lands the nation's first Quincy Hotel
Another piece of the substantial Melbourne hotel puzzle has fallen into place as King Street prepares to host the nation's maiden Quincy Hotel.
After a period of speculation, 33 King Street will formally host the outlet after developer BPM came to terms with multinational investment fund InterGlobe. Toga Far East will manage the Quincy Hotel-branded tower after InterGlobe picked up the approved site for $91.3 million.
Asia One initially backed the project with BPM coming on at a later stage. After guiding the 241-room development through to approval, BPM then sough to offload the permit.
Similarly structured to BPM's fellow hotel development at 9-11 Exploration Lane, the King Street build will be developed by BPM although final ownership will rest elsewhere. Contractor Maxcon has been assigned to both the King Street and Exploration Lane builds.
Maxcon is expected to begin works onsite in the third quarter of 2018.
What they say
Given the risks associated with developing in the current lending environment, BPM sought a unique fund-through arrangement to remove any reliance on local financiers.
We have proven as a business that we can prevail during times of economic uncertainty through our agility alone. Our extensive global relationships, and our ability to innovate the development sector and its existing finance structures, allows the BPM business to see continued growth when many local developers become victims to the property cycle.
Managing Director of BPM, Jonothan Hallinan
The appetite from international investors was substantial. The ability to partner with an experienced local developer like BPM was certainly seen to de-risk the project’s delivery, however it was the composition of the deal and its unique terms that made the opportunity so sought-after.
The structure of this contract is a first in the Australian market and is the result of several weeks of collaborative discussions.
To lead these discussions with international giants like InterGlobe and Toga Far East is demonstrative of BPM’s scalable business model and sound strategic delivery, which allows us to traverse multiple development sectors and work with a multitude of partners.
BPM’s Development Director, Tom Howgate
Hotels still standing strong
The Quincy Hotel and Exploration Lane projects stand to add a further 371 hotel rooms to Melbourne already super strong pipeline.
Major CBD and Southbank projects at construction which are solely, or in part dedicated to hotel accommodation include W Hotel at Collins Arch, Vibe Hotel Queen Street, Holiday Inn Express City Road, Adina Southbank, Adina Apartment Hotel at West End and the Ritz-Carlton at West side Place.
In another Australian first Melbourne is also set to host the nation's first St Regis hotel with local interior architecture practice CHADA announcing they will provide design input for the forthcoming development.
