He plans to make use of the permit that attracted previous owners to develop a 30,000-square-metre tower on the site, nearly triple the 10,700 square metres of the existing building. But he will lease it out at a discount while he works out what the new building needs and tweaks the permit.
“The mistake was the [previous] developer[s] should have kept the building occupied until they were ready to develop,” Mr Pelligra said.
“We’re keeping it going but made it affordable for that end of town.”
The building will open for new tenants – getting up to 10 per cent off market rates – in June after a major makeover.
Flexible workplace operator IWG, which has taken about 3500sq m across floors 2, 3, 4 and 5 for its Signature-branded offering, was one of the tenants making up the near-70 per cent commitment to date from office and retail tenants, Mr Pelligra said.
67 Pall Mall, founded in 2015 in London and which has venues in Verbier, Switzerland (opened in 2021) and Singapore (opened last year), could also move in next year if its high-end refurbishment of the top three floors was completed in time, he said.
The Melbourne facility will feature a 7.5-metre-high wine wall over its 13th and 14th floors, with private rooms and flexible spaces that can be configured for events such as tastings, dinners and cocktail parties. There will be a whisky-focused cocktail bar.
It will have open-air balconies overlooking Treasury and Fitzroy Gardens, the MCG, Parliament House and city. Members will have access and reciprocal rights at other club venues and will be able to store their wine on location as well as being able to taste low-margin wines from the list that offers 5000 wines by the bottle and 1000 by the glass.
The club is undergoing an expansion phase, with Melbourne and Bordeaux and Beaune in France making up three of five sites due to open over the next seven years.
“Melbourne offers an excellent new foothold for 67 Pall Mall in Australia, and allows us to engage with a passionate wine culture and a knowledgeable collector community,” said club founder Grant Ashton, a former head of European credit trading at Barclays Capital.
“67 Pall Mall Melbourne will be the city’s first private members’ wine club and expand Melbourne’s rich hospitality offering. This is a striking property that offers views across the city from a fantastic central location at Spring Street, and like each of our properties, provides a dramatic backdrop to enjoy some of the finest wine found anywhere in the world.”
The arrival of 67 Pall Mall would boost Melbourne’s vibe as a hospitality hub, Lord Mayor Sally Capp said.
Colliers director of retail leasing Adam Lester said the tenancy agreement was the largest dedicated to hospitality in the CBD for a decade.