Under the deal, the 241-room hotel on the corner of Flinders Lane and King Street will be developed by BPM for InterGlobe, and managed by Toga Far East under the Quincy hotel brand.

“Given the risks associated with developing in the current lending environment, BPM sought a unique fund-through arrangement to remove any reliance on local financiers,” said Jonothan Hallinan, Managing Director of BPM.

“We have proven as a business that we can prevail during times of economic uncertainty through our agility alone.”

“Our extensive global relationships, and our ability to innovate the development sector and its existing finance structures, allows the BPM business to see continued growth when many local developers become victims to the property cycle.”

BPM’s Development Director, Tom Howgate, lead the negotiations with InterGlobe to secure the sale, and believes the combination of local expertise and flexible commercial terms made the project highly desirable to large-scale international investment funds.

“The appetite from international investors was substantial. The ability to partner with an experienced local developer like BPM was certainly seen to de-risk the project’s delivery, however it was the composition of the deal and its unique terms that made the opportunity so sought-after,” said Mr Howgate.

InterGlobe’s purchase of the project will fund its delivery in instalments, with construction by Maxcon expected to commence in the third quarter of 2018.

“The structure of this contract is a first in the Australian market and is the result of several weeks of collaborative discussions,” said Mr Howgate.

“To lead these discussions with international giants like InterGlobe and Toga Far East is demonstrative of BPM’s scalable business model and sound strategic delivery, which allows us to traverse multiple development sectors and work with a multitude of partners.”

BPM acquired the permitted 350 square meter site in 2016, and has since obtained a revised permit for a redesign which now includes 241 room keys over 30 levels, and common facilities including a ground floor café and rooftop bar.

See also:

'Green Spine' awarded Australia's tallest building for Melbourne's Southbank by Beulah BMW Site

$450m Melbourne Northbank Seafarers Place hotel and mixed-use redevelopment officially approved

$75m Holiday Inn Geelong hotel approved to start construction