Andy Zhang’s V-Leader group is likely to convert the Hotel Claremont in South Yarra to a mixed-use apartment after buying the heritage building in a $22 million deal.
The grand, historic Italianate building, previously owned and operated by hotelier Michael Renzella, sold to V-Leader with a permit in place for a $50 million, 12-level, luxury mixed-use development.
The deal was brokered by Teska Carson’s Michael Ludski and Luke Bisset. They quoted $20 million to prospective buyers, but Mr Ludski declined to discuss the sale price or buyer.
A buyer caveat placed on the property names V-Leader Projects. Individuals with knowledge of the deal say the final price was around $22 million.
Mr Ludski said the Claremont was likely to undergo a redevelopment along the lines of the approved project.
The 906-square-metre site allows for a mixed use building with four shops, 1195 square metres of office, 57 apartments and 30 car park spaces.
“It’s not an easy development given the constraints of the heritage; however, there were four or five serious parties at the price,” he said.
The existing three-level Claremont Hotel has 81 rooms and two ground-floor shops, a Chemist Warehouse and retailer Siricco, returning combined annual income of $181,500.