Copy link Copied Copy link Copied Subscribe to gift this article Gift 5 articles to anyone you choose each month when you subscribe. Already a subscriber? Login Melbourne’s glitzy Shangri-La Hotel could have a new co-owner within weeks, with Malaysian real estate developer SP Setia poised to sell half of the tower to an unlisted credit fund at a $500 million-plus valuation. Street Talk understands sell-side advisers Deloitte and Colliers are in the process of signing a binding contract with a party who will take ownership of 50 per cent of the five-star, 60-storey hotel that the pair has shopping around as a competitor to the iconic Crown Melbourne.
Sources said Sepia was open to a 100 per cent sale, but decided to retain the equity stake as it worked through a fit-out of the rooms. It is hoping to open its doors to guests in late 2025. Should a deal be signed as expected, it would give the credit fund a slice of the Exhibition Street property overlooking Carlton Gardens and the Royal Exhibition Building.
The hotel, built above an old Telstra site, was pitched to prospective buyers as “one of five iconic Shangri-Las around the world”. SP Setia began seeking buyers more than two years ago with expectation for $500 million on a 100 per cent basis. Shangri-La Melbourne in 2022, when it was under construction.
Along with Multiplex, the builder, SP Setia finished construction last year and is now jazzing up their rooms. The striking twin-tower structure – designed by Fender Katsalidis and Cox Architects – houses the Shangri-La in one wing and a luxury apartment block dubbed the Sapphire by the Gardens in the other. Copy link Copied Copy link Copied Subscribe to gift this article Gift 5 articles to anyone you choose each month when you subscribe.
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