![An artist's impression of a 203-room hotel, approved for Garema Place in Civic. Picture supplied An artist's impression of a 203-room hotel, approved for Garema Place in Civic. Picture supplied](/images/transform/v1/crop/frm/146508744/858d8f50-2d81-4ee5-92be-f813fde11c86.jpg/r0_196_1920_1280_w1200_h678_fmax.jpg)
Geocon will walk away from its plans to build an 11-storey hotel at Garema Place in Civic, nearly three years after the proposal was approved.
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The developer has listed 70 Bunda Street and 47 Garema Place for sale with price expectations around $30 million.
Plans for a 203-room luxury hotel could be resurrected by a new owner, however, given the ACT planning authority green-lit the proposal in 2020.
First lodged in 2018, the plans included demolishing Canberra's iconic Gus' cafe and rebuilding it in the same spot in accordance with its heritage status.
The proposed hotel would also include a rooftop pool and bar, a ballroom, ground-floor restaurants and cafes and 2500 square metres of office space.
The 1503-square-metre site spans two blocks and is located in a prominent position opposite Canberra Centre with frontages on Bunda Street, Garema Place and Garema Laneway.
Geocon purchased the larger block, Garema Centre, in 2017 for $13.35 million. Two years later, the group purchased the block next door, which houses Gus', for $6.18 million, CoreLogic records show.
Geocon managing director Nick Georgalis said selling the asset would help the group 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.
Mr Georgalis said the group would look to acquire more sites for apartments in the future.
"We are not seeing any slowdown in sales and, with the increase in demand and reduction in supply, there will be more pressure on housing for the next few years," he said.
![An early render of the Garema Place hotel project. Picture supplied An early render of the Garema Place hotel project. Picture supplied](/images/transform/v1/crop/frm/146508744/f8b54410-882e-48d1-be0c-0b475cca82a4.jpg/r0_52_1018_624_w1200_h678_fmax.jpg)
The development proposal attracted some controversy over the years.
Geocon had originally proposed a 16-storey, 233-suite hotel for the Garema Centre site but it was opposed by the ACT Greens, who said the tower would cast a shadow over the area.
The developer reworked its plan and reduced the hotel's height and room count.
Construction was intended to start at the end of 2020 for an expected opening date in 2022.
Hotels still a focus, Geocon says
Geocon scrapped plans for its West Block hotel in February, selling the heritage-listed Barton property for more than $20 million in a private sale.
The sale came four years after the developer bought the site from the federal government for $6.25 million.
The group also had plans to build a luxury hotel as part of the Kingston Arts Precinct, however Geocon lost its contract for the project late last year.
Despite this, Mr Georgalis said hotels would still be a focus for the group, which currently operates seven Abode hotels.
"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 the year," he said.
Mr Georgalis said more Abode hotels are in the pipeline, including one in the upcoming Wova development in Woden.
Investors sought for Garema Place hotel
Mark Durran and Nik Sasic from JLL's Sydney office have been appointed to sell the Garema Place site.
"Very rarely is a hotel development opportunity with this scale and certainty offered for sale in the heart of Canberra CBD," Mr Durran said.
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Mr Sasic said an incoming investor stands to benefit from the approved plans.
"The mixed-use development features perfect positioning in terms of the approval, the location and interest from operators," he said.
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