Plans proceed for hotel revamp after joint venture considered

The owners of Magnolia Court, a former boutique guesthouse in East Melbourne, is believed to have looked at creating a joint venture as it looks to revamp the historic building.

The building 95-101 Powlett St is currently boarded up with the owners Primeland Group and Singaporean fund Baksh Capital, who purchased the property for $9 million in 2020, wanting to refurbish it by adding rooms, increasing the size of the restaurant and lobby areas.

Plans for the $4.5 proposed revamp plan have been submitted to the City of Melbourne and are being assessed.

However, sources have told Inner City News that the owner had looked at the option of creating a joint venture with an international party, with an inquiry made with a real estate firm, but “nothing has been transacted”. 

One source, who wished to remain anonymous as they weren’t authorised to speak publicly, said the property wasn’t advertised, however one inquiry eventuated with a “personal visit” to the property by an unknown party.

The hotel is understood not to be on the market with the owners “still proceeding” with their planning application before the council.

East Melbourne Group planning convener Greg Bisinella, who has joined residents in fighting the plans after having cited concerns of increased traffic and noise, said it was his understanding that the building was “advertised as a development opportunity”.

He said revised plans had been supplied to the council in reducing the hours of operation and the size of the outdoor dining but it’s “still excessive.”

“They’ve said they would stop the outdoor dining at 8pm and the overall indoor dining at 11 o’clock instead of 11.30pm and reduce some of the numbers internally,” he said.

Ultimately, those amenity issues that we raised are still pertinent to us and we still have grave concerns about that, we haven’t changed our position.

Residents have argued that the proposed plans would have “adverse impacts” on the amenity of the neighbourhood.

The City of Melbourne said the “application is currently still under assessment”.