02 Sep 2020
RealestateSource.com.au - Wednesday 2 September 2020
PrimeLand, Baksh Capital pay $9m for East Melbourne’s historic Magnolia Court
PrimeLand Group with Singaporean fund Baksh Capital has paid $9 million for East Melbourne’s Magnolia Court with intentions to renovate and extend it.
The guesthouse at 95-101 Powlett Street wasn’t for sale six months ago however, with hospitality one of the hardest hit sectors in the early stages of the COVID-19 pandemic, vendor Leaper Holdings offered the operator an option to pay a reduced rent or break the lease, for which it chose the latter.
Teska Carson’s Luke Bisset then campaigned it off-market.
PrimeLand chairman Robert Brij said “the site provides us an opportunity to not just embrace East Melbourne’s history, but put it on display to the world.”
“The character and personality of Magnolia Court is incomparable, we hope to breathe some life into the hotel and restore it to its full potential.
“Its humbling to be part of such an important piece of the area’s history”.
The purchaser is behind other Melbourne boutique accommodation and is presently proposing a Holiday Inn at 471-479 Swan St and 10 Belgravia St, Richmond, as part of a joint venture with Diamond Hospitality Singapore and Pelligra Group (the latter a local developer with which it is also constructing the Olivia Brighton apartment complex and Lionsgate Business Park).