27 May 2015 – 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.
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
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.
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.
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.
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.
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.
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
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.
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.
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.”
The Public Expressions
of Interest process commences this week and is set to close at 5:00pm on
Thursday 25th June 2015.
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