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Australian developer Grocon has short-listed two Asian investors to acquire the A$750 million (S$751.52 million) hotel it proposed on the IMAX cinema site at Darling Harbour, reported The Australian.
Grocon’s plans to redevelop the IMAX into a six-star W Hotel as well as luxury serviced apartments has attracted extensive international interest and compelling bids from local players.
Although a large number of parties were given access to the project’s detailed information for due diligence and submitted detailed offers, two parties were shortlisted by Grocon last week.
Both of which are rumoured to be Asian players, with the bids hovering between A$700 million (S$701 million) and A$750 million (S$751.52 million).
Last month, it was reported that a Chinese consortium with existing local holdings is interested in the complex but it is not clear if it made the cut.
The firm’s move to run a proposal for the hotel along with the option of developing an office complex seemed to have paid off, given the aggressive jockeying for the harbourside project.
Notably, the hotel investment is marketed by Dean Dransfield of consultants Dransfield Hotels and Resorts and Craig Collins of JLL.
As part of the NSW government’s overhaul of the Darling Harbour entertainment precinct, Grocon plans a 23-storey hotel, retail and cinema complex as well serviced apartments on the 31 Wheat Road site.
A spokeswoman for Grocon noted that “while we are exploring all options, we currently hold a DA for commercial office use only”.
“Whether it’s an office or hotel remains to be seen — either way, it’s a fantastic building and will make a positive contribution to the Darling Harbour precinct,” she said.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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