Hospitality trailblazer Justin Hemmes has plunged Merivale into another major project, buying an ageing car park in the Melbourne CBD with plans to create an all-new multi-faceted entertainment precinct.
Merivale has secured the purchase of Parkade, at 34-60 Little Collins Street, and announced plans for the adaptive reuse of the 1960s structure, transforming it into a diverse range of attractions.
The revised site will incorporate bars, cafes and restaurants, including another Totti’s, at street level, and a Melbourne instalment of Mimi’s on the top level, flanking a boutique hotel and the greenery-soaked “sky garden”.
It will host live music, and also feature a gallery and what’s being called an ‘incubator hub’ for artists, adjoining creative studios, exhibition spaces and offices.
City of Melbourne council approved the sale at a meeting convened on Tuesday evening, punctuating a long-term plan for the bar tzar.
“This is our boldest and most innovative project that we have embarked upon to date; a vision that I’ve been conceptualising and refining for a decade,” says Hemmes.
Melbourne’s Lord Mayor, Nick Reece, praised the project and Hemmes’ initiative, envisioning a “hospitality tour de force” in the city’s future.
“This entertainment precinct will be right on the doorstep of Melbourne’s world-class theatre district – and create hundreds of jobs and generate millions of dollars for the local economy.”
Located in the heart of the CBD, two blocks from Parliament House, the site has long provided much-needed parking in the area, and there were quickly critics of a move to remove 940 car spaces from the city centre.
The group says it will be considerate of adjoining residential and commercial neighbours, heeding the motives of privacy and noise and amenity of the local neighbourhood. Community will be invited to engage on the process, along with council and planners.
Merivale offers that it will not be a nightclub, rather a place for families, tourists and creatives, and “the dream site” for Hemmes’ vision.
“The revitalisation and repurposing of this under-invested yet wonderful site has the potential to be an incredible addition to the fabric of Melbourne,” he adds.
But before planning or works can begin, Merivale will need to find agreement with property giant Dexus, which holds a lease to operate it as a car park until June 2037, paying around $468K annually. The sale does not negate the lease.
This hasn’t dissuaded the hotel baron, who has also bought an adjacent building, currently occupied by an Argentinian steak restaurant and a pizzeria.
No sale price for Parkade has surfaced, but sources have estimated its value at north of $110 million.
A spokesperson for the City of Melbourne relayed that funds from the sale will go to capital works programs delivering infrastructure for the Melbourne community.
The new acquisition joins Merivale’s foray into the southern capital in 2021, when the group purchased Tomasetti House in nearby Flinders Lane.
Settlement on Parkade is slated for June this year.
