Geocon sells Garema Place hotel site for $30 million

Geocon had previously planned to build an 11-storey hotel on the site.

The Bunda Street property sold for $30 million on March 1, CoreLogic records show.

While the buyer for the hotel site has not been confirmed, it is understood local developer TP Dynamics was in discussions to purchase the site at one stage.

TP Dynamics and Geocon declined to comment when contacted by The Canberra Times.

The property, which spans two sites at 70 Bunda Street and 47 Garema Place, was listed for sale in October.

Plans for a 203-room luxury hotel on the site were approved by the ACT planning authority in 2020 and included a rooftop pool and bar, ballroom, ground-floor dining and 2500 square metres of office space.

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First lodged in 2018, the plans included demolishing Canberra's iconic Gus' cafe and rebuilding it in the same location in accordance with its heritage status.

Geocon paid a total of nearly $20 million for the two sites between 2017 and 2019.

Geocon managing director Nick Georgalis told The Canberra Times in October the group was selling the asset to focus on its residential projects.

"Our residential sales have been stronger than ever and the group is focused on expanding the residential pipeline," he said.

But hotels would still be a focus for the group, which currently operates several Abode hotels, Mr Georgalis said.

"We are very focused on the hotel assets we have already opened in the ACT and NSW and under construction, as they have bounced back stronger than ever after the COVID restrictions had been lifted earlier in [2022]," he said.

Meanwhile, the ACT government's City Renewal Authority has proposed a series of upgrades to improve Garema Place, with a goal to declutter the space and add more greenery.

The Garema Place project follows upgrades to City Walk in 2020, which saw new garden beds, lawns and street furniture added.

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