One of Australia’s most famous dining destinations has been listed for sale in a move expected to attract widespread interest from an array of local and offshore investors.
CBRE and Fitzroys have been appointed to sell the properties, which are leased by ‘Master Chef Australia’ star George Calombaris and house hospitality powerhouses Gazi and The Press Club, situated at the prestigious east end of the Melbourne CBD.
Located at 2 Exhibition Street and 52 & 72 Flinders Street, the offering comprises three titles on one long term lease to Calombaris’ flagship businesses under the Made Establishment banner. The highly exposed ground floor retail properties are positioned at the foot of the historic Herald and Weekly Times building on the corner of Exhibition and Flinders Streets, and are surrounded by the CBD’s most high profile office towers, hotels and luxury retail brands.
CBRE Melbourne City Sale agents Josh Rutman, Mark Wizel and Paul Tzamalis, in conjunction with Fitzroys’ Chris Kombi and Paul Burns have been exclusively appointed to sell the property via Public Expressions of Interest. Gazi and the Press Club, a mainstay in The Age Good Food Guide, attract more than 170,000 patrons each year. The Press Club Projects business also operates from the premises, which provides private functions and is the “testing ground” for the flavours and menu that are produced at the neighbouring restaurants.
Mr Calombaris commented on the upcoming sale: “Whilst our landlord may be changing, our longstanding commitment to this corner is unwavering as much of our growth and success stemmed from this terrific location. This is our spiritual home.” The tenant has also recently undertaken a $3 million dollar refurbishment of the three tenancies, designed by acclaimed March Studios. The retail properties feature a combined 55 metres of street frontage and are the only ground floor retail tenancies in the mixed use office and residential complex, which boasts major tenants UBS and Ernst and Young.
It comprises three separate tenancies all of which contain state of the art commercial kitchen equipment and high end internal fitouts that have received numerous accolades. “The diversity of income that comes from the three standalone businesses will provide purchasers with the comfort to hold these properties for the long term, with the additional opportunity to explore further subdivision of the spaces in the future,” Mr Kombi said.
“Very rarely is the market offered the opportunity to own a significant corner in the CBD, let alone with a long-term secure lease to a major proven hospitality tenant like Made Establishment,” Mr Tzamalis said. He added: “Super prime retail properties are incredibly difficult to secure in the CBD’s east end, and the sustained quality residential and commercial activity in the immediate area will continue to underpin the growth of retail trade for strategically located businesses.”
A recent example of the market’s confidence in east end retail property was the sale of the Imperial Hotel at 8 Bourke Street, which was sold at auction subject to a long lease for a tight 3.5% yield. “Existing CBD owners as well as new incoming purchasers seem to understand what is required to secure quality retail and we don’t see this property being any exception, given its quality fundamentals and several avenues for deriving future upside,” Mr Rutman said. “Early interest has already been received from private owners in the area as well as syndicates of doctors and lawyers looking to place their funds into a secure long term investment.”