Representatives of S P Setia, Multiplex, Shangri-La, and the City of Melbourne gathered to break ground on what will become one of Melbourne’s most iconic developments, Sapphire By The Gardens located at 308 Exhibition Street, Melbourne earlier this week.

Developed by S P Setia, the mixed-use project’s western tower measures 62 storeys and will host Melbourne’s newest five-star hotel, the Shangri-La. The eastern tower is 60 storeys and will house over 300 luxury residential apartments.

The two towers will be joined by a striking Sky Lounge on level 46 overlooking the UNESCO world heritage listed, Royal Exhibition Building and its surrounding Carlton Gardens.

Speaking at the event the CEO of S P Setia’s Australian operations, Mr Choong Kai Wai, said that he was excited to see work commence on site.

“Today’s ground-breaking ceremony represents a significant milestone for Setia and further signals our commitment to developing a pipeline of projects that are highly sought after by the Australian market,” Mr Choong Kai Wai said.

“The secret behind Sapphire By The Garden’s success, with over 95 per cent of the project sold, was the substantial underlying demand for premium, highly-liveable and world class residential apartments in Melbourne’s CBD. The market wanted a high-quality product and we’re proud to have delivered that at this site.”

The $565 million build contract to deliver Shangri-La Melbourne and Sapphire By The Gardens was recently awarded to premier global construction company, Multiplex.

Regional Managing Director of Multiplex Victoria, Graham Cottam, said that he anticipated this build would become one of the organisation’s, and Victoria’s, most significant construction projects over the next three years.

“We are thrilled to be appointed by S P Setia to deliver this world-class mixed-use development, drawing upon our extensive experience constructing high-rise buildings in the city,” Mr Cottam said.

“As one of Multiplex’s largest projects currently underway in Australia, it is set to generate significant employment throughout its construction and beyond.”

With construction anticipated to take three years, the project is expected to generate over 1,000 jobs during the construction and initial hotel operational period; representing a significant economic impact for Victoria.

Located in the north east corner of Melbourne’s CBD, near the culture and theatre precinct and overlooking the Carlton Gardens and Royal Exhibition Centre, the project’s 500-room luxury hotel is perfectly positioned to cater for tourists visiting Melbourne.

Shangri-La Asia Limited CEO, Mr LIM Beng Chee said that high demand for five-star accommodation in this thriving commercial and tourist precinct, coupled with strong hotel occupancy rates, made this location the perfect-fit to launch Shangri-La’s first Victorian offering.

“Melbourne is one of Australia’s top business and tourism cities and we are pleased to partner SP Setia for our expansion in the city. Shangri-La Hotel, Melbourne will be part of an iconic building complex within walking distance of diverse offerings including vibrant retail and dining hubs, as well as cultural and theatre attractions. We couldn’t have chosen a more strategic and spectacular location to site our hotel and to introduce our Asian-inspired hospitality to all visitors once the complex is completed.” he said.

See also the latest Australian hotel news:

IHG launches 'voco Melbourne Central' hotel to be part of ‘380 Melbourne’ development

'Ovolo The Valley' hotel in Brisbane's Fortitude Valley opening next month

Novotel Twin Waters Resort sold in $100m deal to Shakespeare Property Group