Developer to turn Melbourne CBD site into high-rise hotel

The developer, led by CEO Johnson Zhang, also owns a 10-storey commercial building across the road at 440 Elizabeth Street, purchased for $75.6 million in 2016. The developer plans to turn this into a medical care facility under its Wellington Health brand.

Colliers agents Oliver Hay, Leon Ma, Matt Stagg, Daniel Wolman and Trent Hobart brokered the latest sale after an expressions-of-interest campaign generated 10 bids from local, interstate and offshore developers.

Mr Hay said the large number of infrastructure projects under way nearby including the new State Library and Parkville Metro train stations and the $250 million renewal of Queen Victoria Market as well as $3 billion worth of residential, hotel and commercial developments, had underpinned interest in the Elizabeth and Franklin street sites.

APH Holdings’ acquisition of the CBD site comes after it secured the Victorian government’s Eastern Health as the anchor tenant for the first stage of its $1 billion Wellington Health precinct in Box Hill.

The public healthcare provider, which operates the neighbouring Box Hill Hospital, has signed a 40-year lease for 15,000 square metres of medical space in stage one of the development, which is under construction and due for completion by mid-2024.

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