New Venue for Iconic CBD Hospitality Destination
One of the most prominent restaurant buildings in Melbourne’s famous Hardware Lane has been leased, in one of the largest CBD hospitality deals struck this year to date.
Fitzroys Associate Director James Lockwood negotiated the 5+5-year lease of 68-78 Hardware Lane to an experienced hospitality operator, at a rental in excess of $250,000pa.
The 2-level, 395sqm building was offered fully-fitted with extensive hospitality and kitchen infrastructure, and has function space on the 1st floor.
Lockwood said the new tenant will also undertake a full refurbishment of premises.
“The new tenant has over 25 years’ experience in the hospitality industry operating various bars, restaurants and function venues across Melbourne, from the CBD to waterfront Docklands sites and retail strips, and believes Hardware Lane will come back stronger than ever.
“A proven operator with experience in a range of locations, committing to a long-term lease and capital outlay on refurbishments reflects a huge vote of confidence in the CBD.”
Lockwood said enquiry for the property was strong given Hardware Lane’s status as one of Melbourne’s iconic hospitality destinations.
“Melbourne’s city and laneway culture continues to resonate with locals and tourists alike, and people are anticipating authentic Melbourne experiences after being away from the CBD.”
He said the fact that the building was fully-fitted with kitchen infrastructure was also a major factor, continuing a trend seen throughout the CBD and shopping strips since early last year.
“Fully-fitted premises offer operators a more time and cost-effective opportunity to establish or expand their business, particularly in an uncertain time during which they need to be leaner and more agile.”
Active Week for Melbourne’s Industrial West
Lendlease’s unlisted Australian Prime Property Fund Industrial has bought up 3 logistics facilities in Melbourne and Sydney from a Mirvac-run vehicle for $161 million, including 2 facilities in Altona.
The fully-leased Melbourne assets were acquired on a circa 4% yield, and adjoin existing APPF Industrial properties, offering future development by site consolidation.
They include 26 Harcourt Road, with gross lettable area of 32,329sqm and adjacent to the fund’s 21-27 Marshall Court; and 47 Westgate Drive, comprising 26,998sqm with an additional expansion site of circa 10,500sqm, neighbouring the fund’s 121-139 Dohertys Road property.
Meanwhile, ASX-listed Goodman Group bought a 125ha land parcel in Truganina for a warehousing development. Zoned Urban Growth, the site is on Riding Boundary Road, and what will become the Metropolitan Ring Road, and 88ha is developable to industrial use.
The site less than 30 minutes from the Port of Melbourne and Melbourne Airport.
According to Real Capital Analytics, industrial transactions across Australia totalled $6.3 billion in the June quarter, marking the sector’s biggest-ever total.
ESR Australia and GIC have just settled on their record $3.8 billion joint acquisition of the Milestone logistics property portfolio from Blackstone – Australia’s largest-ever property transaction – which comprised 45 assets nationally, including a Woolworths distribution centre in Truganina.
Also in the suburb, and at a Lendlease-owned facility, global e-commerce company Costway leased the 18,751sqm warehouse at 28-30 Distribution Drive for 5 years, for its 1st Australian distribution centre.
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.