Lender banks c$150m for new Melbourne hotel
Ark Capital Partners and Lead Global, backed by Pioneer Wealth, have snapped up the 15 level hotel which recently replaced the long-time Melbourne Theosophical Society headquarters.
The consortium is paying about $150 million for the 191-key investment, Melbourne Place, at 124-134 Russell Street, between Bourke and Collins.
Ark and Lead will now launch a co-branded hospitality fund to hold it.
The seller was alternative fund manager Merricks Capital which – in 2022, when it placed the project into voluntary administration mid-construction, was 50.5 per cent owned by founder and entities controlled by Adrian Redlich, with the balance by interests associated with the Liberman and Abeles families.
At the time the senior lender, owed c$105m, it then provided funding for ADCO to complete building.
Merricks was acquired by Regal Capital for $235m last June.
Bumpy start for new hotel
Penned by Kennedy Nolan, with a basement restaurant, event and function spaces and a rooftop bar, Melbourne Place opened late last year.
The project was proposed by Longriver but at the time it was put into administration, it was controlled by Triple MMM Holdings, directed by Bozhong Li – also the sole shareholder (story continues below).
“We had many expressions of interest for this unique opportunity and we believe that Ark Capital and Lead Global will provide the best outcome for the hotel and all stakeholders,” Merricks executive chairman and chief investment officer, Adrian Redlich, said.
“We are confident that with their expertise, it will reach its full potential and become one of the most vibrant hotels in the city,” he added.
Lead Global grows hospitality portfolio
Grace Tsui, chief executive officer of Lead, which is Myanmar based, said the Melbourne Place acquisition forms part of a long term strategy to grow its hospitality portfolio.
Rahul Parrab, co-founder and chief executive officer of Ark, which is based in Melbourne’s Richmond, added it will invest with Lead again.
Pioneer is based in Melbourne’s Collins St.
The Melbourne Theosophical Society is now based in Manchester Lane.
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