Cornerstone announces maiden mixed development venture in Melbourne

Cornerstone Partners Group chief executive officer Jason Chong (left) and Yotel chief executive officer Hubert Viriot sign the hotel management agreement on Yotel Melbourne. — Image by Cornerstone Partners Group
Cornerstone Partners Group chief executive officer Jason Chong (left) and Yotel chief executive officer Hubert Viriot sign the hotel management agreement on Yotel Melbourne. — Image by Cornerstone Partners Group

KUALA LUMPUR, August 2 — Malaysian-based integrated hospitality asset owner and developer Cornerstone Partners Group (CPG) has announced its maiden mixed development project in proximity to Melbourne’s central business district.

With an estimated gross development value of RM420 million, the 30-storey tower will include hotel and office components.

Located on City Road in Southbank, Melbourne, the project is also set to be a one-stop destination for restaurants, creative co-working spaces and bespoke corporate office spaces in Southbank.

To top it all off, it will be within walking distance from the Crown Melbourne, Southbank Promenade, Arts Precinct, Federation Square, as well as surrounded by other world-class entertainment outlets, amenities and renowned education institutions.

CPG chief executive officer Jason Chong expressed his excitement about the development and said they are thrilled to introduce the company’s story to Australians, particularly with a project which Southbank has never seen in the past.

“Leveraging on our project development capabilities, Cornerstone Partners Group is focused on fulfilling gaps in hospitality markets across Asia Pacific,” he added.

The project will also see the first Yotel — pioneer of sleek, technology-driven accommodation — to Australia.

Rendering of the mixed development developed by Cornerstone Partners Group. — Image by Cornerstone Partners Group
Rendering of the mixed development developed by Cornerstone Partners Group. — Image by Cornerstone Partners Group

For the uninitiated, Yotel is a UK-based hotel group that takes the essential elements of luxury hotels into smaller, smart space, while incorporating a sense of community with areas for co-working, social gatherings and exercise.

“We are truly honoured to embark on a solid partnership with Yotel as we believe in Australia, there is an avenue for disruptive brands such as Yotel, which offer something completely new to the market,” said Chong.

“We were also impressed by Yotel’s global development pipeline, focused on key gateway markets, which fits perfectly with our strategy. Therefore it was only natural to join forces on our first project in Australia in Melbourne, one of the country’s most cosmopolitan and urbanised cities,” he added.

Meanwhile, Yotel chief executive officer Hubert Viriot said Australia is a very sophisticated hotel market with strong stakeholders, but they believe that the affordable luxury segment has been under-served and that’s what Yotel intends to solve.

“Over the past two years, we have been actively searching for the right locations and partners to roll out our brands in Australia, a key market for our global expansion and a key feeder market for our hotels in the US, Singapore and the UK. 

“We are delighted to enter the market with Cornerstone Partners Group,” said Viriot.

Slated for completion in 2022, the 244-room Yotel Melbourne is designed by CHT Architects, featuring Yotel’s latest generation of cabins all equipped with a SmartBed.

Its signature Komyuniti spaces are designed with areas for co-working, informal meetings, relaxing and socialising, serving up everything from flat whites by UK specialty roaster Workshop Coffee to signature cocktails on the outdoor terrace.

The new construction is also equipped with a 24/7 gym and viewing deck with restaurant and bar.

The signing ceremony of hotel management agreement between Chong and Viriot was held in Sydney recently.  

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