Hiap Hoe Limited has signed a joint venture with Brady Property Group for the company’s AUD$500 million development at 380 Lonsdale Street in Melbourne that includes the construction of an Aloft-branded hotel to be managed by Starwood.
In a statement, Hiap Hoe said the companies had entered into a binding heads of agreement on the project.
“It is intended that a new company (“JV Co”) will be established for the purposes of the Project, and the JV Co will be held by the Company and Brady through their respective special purpose vehicles in the shareholding proportions of 51% and 49% respectively.
“The Project is to be funded via a combination of external debt and equity contributions from the Parties in their respective shareholding proportions,” the statement said.
380 Lonsdale Street, currently a freehold commercial building, is slated for re-development into two towers of 51 and 47 storeys on top of a five storey podium, with an option to go up to 59 storeys. The proposed development will feature 658 apartments, 1,344sq m of retail space, a 399-space car parking facility as well as a 350-room upper-scale hotel.
The Group has previously entered into a Letter of Intent with Starwood to supervise, direct and control the operations of the proposed hotel tower under the Aloft brand.