A rendering of the proposed development at Little Collins Street, Melbourne, 34-60.
Billionaire has pledged that he will transform a major site in Melbourne’s CBD, which he just purchased, into a national attraction, with a high end precinct, including bars, accommodation, skygarden, and even an arts gallery.
His Merivale operation won the bid for a City of Melbourne owned car park at Little Collins Street 34-60. Industry players estimated that it paid around $60m.
Mr Hemmes said that he has been searching for a location like the carpark for over a decade. He was eager to start the adaptive re-use of the complex.
Josh Rutman of JLL handled the sale, but declined to comment.
Merivale will enter into “commercial negotiations” now with Dexus. Dexus has the right to run the eight-storey parking garage, basement, and retail premises at the site until 2037. The lease was not terminated by the land sale and Mr Hemmes is confident that he can reach a deal with Dexus.
Mr Hemmes stated that the purchase was a “sign of confidence in Melbourne’s market and the future for the city”. He called the site his “passion project”, on which he has been working for almost a year. “We want to create an exciting and iconic destination not only for Melbourne and its people, but also for Australia as a whole,” he said.
Artist’s impression of proposed development in Melbourne CBD.
Mr Hemmes said there would be a mix between retail and restaurants, bars, and a jazz bar. The complex will include a boutique-hotel and restaurants from Hemmes’ stable, including Italian-themed Totti’s restaurant and Asian restaurant Mumu.
“I’ve looked for the right sites mostly around Sydney and Melbourne,” said he, adding that the Melbourne location was a unique chance partly due to restrictions around the carpark, but he would still make good use of it.
“It is not a development site that can be developed indefinitely, and the restrictions affect what we do with it,” said he. “I love the building; it’s an elegant concrete car park with many wonderful elements that we can use.”
Merivale is active in Melbourne. In 2021, it bought Tomasetti House on Flinders Lane. It is currently rebuilding the house and hopes to be open by early next. Mr Hemmes owns Kantay House, which he purchased in Meyers Place in 2023 for $15m. He believes that his model is appealing nationally.
Mr Hemmes said, “Our philosophy does not originate in Sydney or Byron.
“Our philosophy is to deliver a great product, great service and a wonderful atmosphere at affordable prices. We create offerings that are suitable for all different demographics.
“I believe that if you deliver a great product with a great service, you will do well.” It’s the exact same philosophy, wherever we go.”
