Rustica Signs on for Landmark Queen & Collins project
Renowned baker Rustica will open its newest offering within GPT Group’s landmark Queen & Collins development in the Melbourne CBD.
Fitzroys’ James Lockwood and Rick Berry along with Future Proof Retail and Hospitality’s Mitchell Humphreys negotiated the lease for ASX-listed GPT.
Rustica will take up position as the flagship café in the development, offering its quality baked goods, breakfast and lunch fare and coffee as part of Queen & Collins hospitality and lifestyle offering for workers, visitors and all Melburnians.
Rustica is in the process of fitting out its new 163.5sqm space on the corner of Queen and Little Collins Street, next to the main Queen & Collins tower entrance. The project is expected to welcome the first office workers in August.
“We're really excited to be moving into the Queen & Collins development, rich with history and amazing Venetian-Gothic architecture,” Rustica founder, Brenton Lang said.
“Our fit-out will pay homage to the original building's design and be a little left-field from previous Rustica sites.
“Expect to see all your favourite Rustica breakfast and lunch go-tos across all days of the week, plus an extensive grab-and-go offering for city workers on the run.”
Lockwood said this commitment from an iconic and experienced name in Melbourne’s renowned café and hospitality scene is a huge vote of confidence for the future of the CBD, as well as the Queen & Collins development. This will follow Rustica’s maiden site in South Yarra, and sites at Highpoint, Melbourne Central and Rialto.
The Queen & Collins redevelopment has reimagined the 34-storey tower, formerly home to the headquarters of ANZ, and upgraded the adjoining Melbourne boom-time heritage buildings – the Safe Deposit Building at 90 Queen Street, and the former Stock Exchange Building at 380 Collins Street. Connectivity between the buildings has been enhanced by a series of semi open-air laneways, courtyards and intimate squares referred to as 'Campiellos'.
Lockwood and Berry are managing the leasing campaign of the 1,100sqm retail space in the development’s lower levels along with Mitchell Humphreys. This will create retail experiences and character-filled spaces through restaurants, cafés and shops. The precinct features a grand restaurant dining space, in the Stock Exchange Building’s antechambers, as well as a new basement car.
Lockwood said lifestyle and hospitality attributes as part of a holistic work experience have never been more important.
“They can make these developments more than an office building. They can become a destination in their own right, whether it be to get a coffee, meet for breakfast or go out for lunch.”
“In a period of widespread space and location reassessment and flexible working arrangements, attracting workers to the office and the CBD on a day-to-day basis requires exceptional offerings such as this.
“They also present a huge attraction to businesses wanting to attract and retain top-tier talent.”
Berry said quality hospitality operators are increasingly looking to character buildings and fit-outs to provide something unique not just for employees within the building, but all city workers, visitors and Melburnians.
Regional Retail Assets Changing Hands
Nearly $100 million worth of convenience-based retail assets have sold across regional Victoria, as investors seek defensive assets that continue to trade well through the COVID period.
The Coles-anchored Torquay Village neighbourhood shopping centre traded for $40 million on a circa-5% yield. It also has 15 specialty shops and is on a 1.4ha site. The vendor was a private investor who bought the asset 3 years ago from Coles for $35 million, on a 5.9% yield.
Coles Morwell, including a Liquorland and complemented by 7 non-discretionary specialty shops, was sold for almost $28 million, on a 4.94% initial yield. The 5,265sqm centre is on a 1.1ha site.
Another Coles, in Swan Hill, was bought by a Melbourne-based investor for $20 million. The 3,452sqm centre is on an 8,320sqm parcel and includes a Liquorland and 4 specialty shops, and returns $1.079 million pa. The sale price reflected a 5.3% yield. Built in 1995, it had been a Bi-Lo supermarket and was converted into a Coles in 2012, and had been owned by Victoria Square Enterprises since 2003.
Meanwhile, an offshore private investor bought the 7,465sqm Bunnings Warehouse property in Horsham for $9.8 million from a consortium of New Zealand-based investors. Bunnings has a lease until 2025.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2021 Fitzroys.