U.S. private equity giant Starwood Capital Group is making its first property development investment in Australia with a A$600 million hotel and apartment project on Melbourne's Spring Street that it will partner up with Golden Age Group for, The Australian Financial Review reported.
The pair plans to set up a hotel management company to run the A$200 million hotel portion of the development, which is located at 85 Spring St. Golden Age purchased the plot in February from Grocon Pty. Ltd. for a sum of A$75 million, the Nov. 16 report added.
Private developer Golden Age was initially not granted a development permit for its 44-story planned project, but secured the go-ahead after it reduced the number of floors in the apartment portion to 39 levels, which will house 138 luxury apartments. The hotel tower will rise 26 floors high and consist of 250 rooms.