Mount Hotham is set to get undergo a $500 million makeover following the signing of a Memorandum of Understanding yesterday.
A MOU has been signed by between the Victorian State Government, the Mount Hotham Alpine Resort Management Board, and MFS Limited and the MFS Living and Leisure Group, which have been in negotiation since expressions of interest for tenders for the project were called for 12 months ago.
MFS and Ray Group were awarded preferred bidder status in December 2005.
MFS acquired its holdings at Mount Hotham in May 2004 through the purchase of Australian Alpine Enterprises for $72 million, which also manages nearby Falls Creek. MFS then entered into a development agreement with Ray Group to develop the masterplan for Mount Hotham shortly after.
In March this year, MFS sold AAE to MPY for $110 million.
Under the new masterplan, titled New Hotham, the group will realign the Great Alpine Road and construct a new commercial car park with about 500 new spaces for visitors.
The masterplan also includes the construction of the iconic Balé Mount Hotham, which will form the Village centrepiece; 432 residential apartments; the provision of 4000 sqm of retail shops including cafes, restaurants, day spas, cinema and conference facilities; the relocation and redevelopment of a state-of-the-art ski field workshop, ski school and medical centre; and upgrades to the current resort infrastructure including improved water supply, drainage, roads and foot paths.
Ray Group’s director of development Tony Cannon said currently skiers and pedestrian cross the Great Alpine Road. By realigning the road we will be creating a safer environment and a more user-friendly destination.
“Mount Hotham is now a step closer to becoming a true four-season resort destination which will encourage year round use of region’s natural attractions – the ski fields in winter and encourage hikers to enjoy the mountain during remaining months.
“Mount Hotham is a truly breathtaking property and it deserves sensitive development that will help showcase the region to the world,” he added.
The Mount Hotham Resort Management Board is responsible for the development, management and promotion of Mount Hotham.
The MOU is subject to the developers obtaining a planning scheme amendment, preparation of which involved extensive economic, environmental, engineering and architectural investigation. A decision on the scheme amendment is expected in about six weeks.
Mount Hotham boasts its own alpine airport, the only one of its kind in nation, making it more accessible than any other ski field from every Australian capital city.
Cannon said compared to other alpine resorts in Australia, Mount Hotham is under-developed and offers the greatest potential to be developed into a true 21st century ski resort.
The Ray Group have commissioned Italian architect Gionvanni D’Ambrosio to design New Hotham’s centrepiece – the iconic sky-home resort Balé Mount Hotham.
This is not the first joint venture between MFS and the Ray Group. The parties are currently undertaking the $250 million Balé Port Douglas in Port Douglas.
By Kathryn O’Meara
