The $ 70 million corner of Collins Street offers an opportunity

Despite its past steeped in history, it’s what the future holds for property that will be of most interest to potential buyers. Comprising 2,658 m² of rental space on a basement, ground floor, mezzanine and first level, the property generates net income of approximately $ 2.5 million per year.

Anchored by OPSM’s flagship store on Collins Street, the property has seven healthcare and retail tenants, in a block that includes leading names such as Montblanc, Balenciaga, Omega, Burberry and Tiffany & Co.

“Retail and commercial assets continued to trade at record selling prices and firm returns throughout the pandemic,” said Matt Stagg of Colliers, who is negotiating the property with colleagues Anthony Kirwan, Daniel Wolman , Oliver Hay and Leon Ma.

“The flagship retail stores leased to Balenciaga and Louis Vuitton were both acquired by Singapore-based luxury watch retailer The Hour Glass with firm returns of between 2.3% and 4%.”

While the benefits of the city’s new metro service and its stations still under construction have boosted investment, the city’s reopening has also galvanized the commercial real estate market as investors, hotel operators and retailers are looking for opportunities to prepare for the expected rebound.

Just behind Collins Street, and connected by Manchester Lane, is Flinders Lane and its popular entertainment district. The prospects of a revival along the strip have drawn Sydney’s hospitality king Justin Hemmes, who earlier this year acquired Tomasseti House at 277-279 Flinders Lane for $ 43 million, which houses the bar and trendy Mill House restaurant.

Also in the neighborhood, the home of renowned restaurateur Chris Lucas’ Kisume shattered expectations in July when it was sold to a Melbourne-based private investor group for around $ 25 million on a return of just $ 2, 5%.

In October, an eight-story building on Flinders Lane, home to the popular Coda restaurant, hit the market with expectations of $ 35 million or more, the latest bid to win in the hip dining district.

Another Singaporean player, HThree City Australia, bought a downtown office tower at 446 Collins Street for $ 72,625,000 in September.

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