Hepburn Shire Council has named local entrepreneurs and business people Eddy and Malinka Comelli and David and Yuge Bromley as the successful bidders in the purchase of The Rex building in Vincent Street, Daylesford, following a public expression of interest process.
The building sold for $3.75 million. This was above the reserve price of $3.7 million, which was set in accordance with an independent property valuation and the requirements of the Local Government Act 2020.
The EOI and sale process was overseen by an independent probity advisor to ensure the transparency and integrity of the sale process. The marketing and sale campaign was managed by Fitzroys Real Estate Agent.
Councillors accepted the officers’ recommendation and voted unanimously in favour of selling The Rex to the Comelli and Bromley families.
However, the sale price was significantly below the price of $6m Council paid for the Rex in 2016. A further $3m was spent on a partial and incomplete renovation. The loss on the Rex building to the community is therefore in the order of $5-6m.
There was substantial interest in the purchase, and Council received six formal submissions during the Expression of Interest (EOI) process.
Mayor, Cr Brian Hood, said the sale of the building marks the beginning of a new chapter for this unique heritage property.
Ms Bromley said, “We are truly honoured to have the privilege of purchasing this building. We will take time to regroup and plan but our intention is to tap into our combined passions, connections and resources to transform the building into an evolving dining, retail and entertainment destination with a diversity of culture, food, art, music and entertainment.”
“We have some initial plans regarding the arcade and atrium, making it a place where visitors local and from afar can frequent time and time again.
“Our driving goal is to create a space that our children and grandchildren can look to with pride for what the combined energies of the Comelli and Bromley families can bring to fruition.”
Cr Hood noted that any works that fall outside the existing planning permit would require planning approvalsincluding heritage, which is separate to the sale process.
“The sale proceeds will be used to repay the loan linked to the purchase of the site and remaining funds will be allocated into a financial reserve for future expenditure on staff accommodation and community facilities,” said Cr Hood.
“We have already begun our planning, and we will progress our investigation into options for staff accommodation and community facilities throughout 2023. This will include community consultation,” he said.
Council’s original purchase of The Rex building in 2016 and other matters relating to the Hepburn at The Hub project remain under investigation by the Local Government Inspectorate.
Despite repeated requests, the Local Government Inspectorate has refused to release its report – more than 3 years after it began.
Significant questions remain about the original valuations, transparency and purchase process for the Rex and several related property transactions for Bleakley St and Main Rd.
