Vingroup has splurged $22.5 million buying a Sydney CBD site for a major hotel complex.— Photo theaustralian.com.au

Multi-billion-dollar Asian development outfit Vingroup has splurged $22.5 million buying a Sydney CBD site for a major hotel complex in the first foray by a Vietnamese developer into the city.

It is understood Vingroup, which bills itself as one of Vietnamese most respected brands, negotiated the deal through a special purpose vehicle in Hong Kong, buying the Alfasi site fronting 183-185 Clarence Street in Sydney.

The 1030sq m parcel sports a proposed scheme to develop a 172-room hotel, but it is understood there is no development approval as yet. The site also has potential for mixed use development including a hotel.

The selling agents Andrew Langsford and Peter Harper of JLL Hotels could not be reached for comment at the weekend. But it is understood the site sold within weeks of its listing late last year possibly because of the popularity of tourism investment due to the low Australian dollar.

The site was previously an Ausgrid substation and sits near Barangaroo and the International Convention Centre.

Vingroup, which has a plethora of accommodation interests in Vietnam, is expected to develop a hotel given Sydney's paucity of new accommodation.

Vingroup is no stranger to hotel projects having built three resorts in Nha Trang Bay including one with 483 hotel rooms and 168 villas. It also built the 200 room Vinpearl Premium Da Nang in Central Vietnam.

Alfasi recently sold another Sydney site, 65-79 Sussex Street, to Michael Kum's M&L Hospitality for $22.5m.

M&L have since listed their entire Australian hotel portfolio for sale.

Alfasi could not be reached for comment.— The Australian