Hong Kong's Mercedes dealer cranks up Southbank project
The world’s largest distributor of Mercedes-Benz, Hong Kong’s Lei Shing Hong, hopes to develop a $290 million office tower on Melbourne’s Southbank incorporating a state-of-the-art car showroom.
The bold plan to combine an office tower of almost 30,000 square metres with a car showroom is part of a broader trend that has seen upmarket dealerships secure expensive inner-city positions within larger mixed-use projects.
Lei Shing Hong itself is already pursuing a similar strategy in Brisbane, where it took hold of the famous Breakfast Creek Wharf site two years ago with plans for both a Mercedes dealership and residential development.
In Melbourne, the Hong Kong-based conglomerate put its foot on 264-274 Sturt Street when it bought the Southbank site from the University of Melbourne for $52.1 million at the start of last year, in a deal brokered by Colliers International.
Title documents and corporate filings show that Star Auto Properties (Southbank) is ultimately controlled by Lei Shing Hong.
Based in Hong Kong, the private company has five business arms, including cars and property development.
A press report earlier this year flagged a mooted plan by the company to relist in Hong Kong later this year after being privatised a decade ago.
The company has now lodged plans with the Victorian state government for a 22-level, 90-metre tower with a podium on the Southbank site.
Plans outlining the tower include 29,440 sq m of leasable office floor area, a shared arts/office space, a car showroom and display space, along with retail and food and drink premises and artist studio spaces.
The planning documents describe the showroom being set up for a “world leading vehicle manufacturer” and refer elsewhere to a shared art and Mercedes showroom with an area of 2637 sq m.
‘Innovative experience centre’
On the plans itself, the area is described as an “innovative experience centre”.
Nearby the Southbank site is a large Mercedes dealership at 135 Kings Way, with company documents showing that Mercedes-Benz Melbourne is one of the business names controlled by Lei Shing Hong.
Company representatives of Lei Shing Hong in Hong Kong and Mercedes-Benz Melbourne declined to comment when contacted by The Australian Financial Review.
Elsewhere in Southbank, BMW has struck a preferred partner-style deal Malaysian-backed developer Beulah International on a site owned by the German prestige car marker.
It is expected BMW could secure a dealership of 2000 sq m or more on the 6061 sq m site as it transforms its business to adapt to changing demands of the car market.
Six international firms and six local firms are now vying for rights to design the $2 billion project for BMW and Beulah International.
That project would contain residential, world class retail and department stores, a 5-star hotel and designated commercial spaces.
