- The current home of Cotham Dining has sold for over $5M
- Three side-by-side properties in Moonee Ponds have come to market
- Plans have been submitted for a new office on Flinders Street
The former home to George Calombaris’ Hellenic Republic has been sold for over $5 million, three side-by-side Puckle Street properties in Moonee Ponds have hit the market, and Flinders Street is set to see a landmark grade office redevelopment.
Melbourne restaurant sold for $5M
Located in Melbourne’s inner eastern suburb of Kew, 26-28 Cotham Road has been sold for $5,006,666.
The property was previously home to Hellenic Republic, operated by high-profile chef George Calombaris and his hospitality group Made Establishment.
The 635 square metre, two-storey building currently has a 6+6+6 year lease to chefs Ayhan Erkoc and Federico Perez Lopex for their Cotham Dining restaurant and Nazar Wine Bar, both operating under one lease.
The sale price reflected a sharp 3.1% net yield, with Fitzroy’s Chris Kombi noting:
“The result is yet more evidence of the strong demand for quality investment-grade retail assets, despite the higher interest rate environment and a lot of negative market commentary.”
“Investors continue to put their faith in the resilience of bricks-and-mortar investments. Astute investors recognised the opportunity to acquire a well-presented, well-proportioned hospitality building in a central Kew Junction with a secure lease generating a strong rent return that will look all the more favourable as inflation continues to ease and interest rates normalise.
“Buyers are still there and willing to pay the price for high quality,” said Kombi.
The restaurant sits on a 515 square metre site with on-site parking and rear access, and was listed earlier this year; when listed, the property was expecting to see offers north of $4.6 million and it was then noted the current restaurant and wine bar brings in almost $200,000 per annum plus GST.
Fitzroy’s Ben Liu said: “The purchaser bought the property as an investment. They live in Kew and love the area, and can see its upside.
“We also received interest from land bankers looking to acquire a central Kew Junction property with excellent upside, located among leading local and national tenants with public transport at its doorstep and some of Melbourne’s most renowned schools, and assess their plans for the site while enjoying a strong income stream.”
Landbanker’s delight at Moonee Ponds
That is how three side-by-side properties along Puckle Street are being marketed, the opportunity located along one of Melbourne’s best-performing shopping strips.
According to Fitzroy’s Walk the Strip report, vacancies along Puckle Street tightened from 4.6% to 3.2% in 2022, one of Melbourne’s lowest vacancy rates for Melburnian shopping strips.
The property is located at 42, 44, and 46 Puckle Street, to be sold individually or in one line. The Moonee Ponds opportunity is being marketed by Fitzroy’s Ervin Niyaz and Chris Kombi in conjunction with CBRE’s Alex Brierly and Nathan Mufale on behalf of two private owners.
All three properties are currently leased out, with 42 Puckle Street currently leased to Thai restaurant, Smile Thai, on a five year lease from 18 October 2019, returning $73,116 per annum; 44 Puckle Street is on a 4+3+3 year lease to State of Grace Collective from 5 May 2021 returning $74,163 per annum, and 46 Puckle Street is on a 3+5 year lease to body shaping and wellness clinic Body Catalyst from 1 May 2021 returning $53,045 per annum.
The three properties sit on a combined land area of 547 square metres with over 15 metres of street frontage.
New office expected to rise at 26 Flinders
Plans have been submitted to Melbourne City Council by property developer Time & Place for the proposed redevelopment of Hotel Lindrum at 26-30 Flinders Street in Melbourne, just down the road from Fed Square.
The developer said it intends to transform the site into a landmark grade office building, acquiring the site in March 2022, with an existing permit in place for a 30-level hotel and residential project.
A landmark of the Melbourne cityscape, the triple fronted Hotel Lindrum is one of the CBD’s most recognised facades, originally designed by Ward & Carleton in the early 1900s for Griffiths Brothers Tea Merchants. In the 1920s, it was transformed into the headquarters for the Herald empire and later became Lindrum’s billiards centre, before being converted to a hotel in 1999.
The developer expects to commence construction on Hotel Lindrum in late-2023, with works estimated to be completed in 2026.
