AXF Group’s boss Richard Gu, a high-profile property developer in Australia, sells his Melbourne Chinatown development – the Total House – to another investor Jimmy Goh for more than $55 million.
The 1960s Total House car park in Russel Street, registered as the city’s heritage in 2014, was snapped up by the Chinese businessman in 2012, reportedly for $40 million. Always looking out for the high-end real-estate market, Gu planned to transform it into an iconic tower of glittery gold and silver – as a space for business, living and entertainment with a 200-room luxury hotel. Its sale tops a list of recent divestments by the property investor.
Both investors Richard Gu and Jimmy Goh have a long history of property sales in Melbourne’s CBD.
Richard Gu has reportedly walked away from an $8 million purchase of a four-level hospitality building at 59-63 Bourke Street, after placing a deposit on the site nearly two years ago.
Plans for the site, which is home to the popular Italian restaurant Spaghetti Tree and the Madame Brussels rooftop bar, included a 25-level tower and an 18-month settlement period. It sold to another investor for $9.8 million on a passing yield of 3.3 per cent.
Mr Goh has also been an active seller, offloading a 1548-square-metre site at 229-241 Franklin Street at a land rate of around $12,500 a square metre to student accommodation group Iglu midway through last year.
Prior to that, he offloaded two prominent CBD development sites.