Melbourne’s ‘Bunnings hotel’ for sale
The hilltop Melbourne property come to be known since it was proposed five years ago as the ‘Bunnings hotel’ is for sale.
Sources say some $70 million could be expected for the strata asset – actually the Mercure Melbourne Doncaster, at 6 Tower Street, on the north west corner of Doncaster Road, beside a Westfield mall entrance.
MaxCap, which financed the construction in 2021, and Accord Property Group, are the vendors.
For the buyer, vacant possession is optional.
Savills’ Mark Durran and Benson Zhou are the agents.
Doncaster, for more than two decades a major metropolitan activity centre, is 18 kilometres north east of Melbourne’s CBD.
Mercure Melbourne Doncaster
Bunnings paid c$25m in 2011 for the 1.1 hectare Doncaster sites which made way for the hardware store and 4-star hotel.
In 2012, it proposed a mixed-use redevelopment with some 385 dwellings over 20 storeys and a multi-level outlet and car park
Accord came on board for the airspace in 2019 (story continues below).
During construction, its four floor, 8445 square metre component, with 183 suites, six function spaces, including a bar and restaurant, gym, pool and 129 car parks, was speculated would carry a c$68.5m end value.
Meanwhile the two storey Bunnings strata – which that retailer retains – was priced at over $20m.
“The Mercure Melbourne Doncaster offers some of the best and newest meetings and events spaces in Melbourne,” Mr Durran said.
“[It also] provides significant upside potential through focused sales and marketing initiatives,” he added.
“Adjacent to Westfield…the hotel benefit from a high footfall of over 750,000 residents in the trade area,” according to the executive.
The listing comes three weeks since we reported the Brady family’s Amber Property Group sold the c2021 Sebel Ringwood, with 103 4-star suites – for c$30m
That buyer, fund manager Serene Capital, also exercised an option for vacant possession.
A rebrand to Rydges Ringwood is planned.
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