The $ 70 million corner on Collins Street is an opportunity

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Regardless of its troubled past, the future of property is what interests potential buyers most. With 2,658 m² of lettable space over the basement, ground floor, mezzanine and first level, the property generates a net profit of around 2.5 million US dollars annually.

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

“Retail and commercial properties continued to trade at record sales prices and fixed returns throughout the pandemic,” said Matt Stagg of Colliers, who brokered the property with colleagues Anthony Kirwan, Daniel Wolman, Oliver Hay and Leon Ma.

“Retail flagship stores rented to Balenciaga and Louis Vuitton were both bought out by Singapore-based luxury watch retailer The Hour Glass with fixed returns of between 2.3 percent and 4 percent.”

While the benefits of the city’s new metro service and stations still under construction have spurred investment, the city’s reopening has also stimulated the commercial property market as investors, hospitality operators and retailers look for ways to prepare for the anticipated recovery .

Flinders Lane and its popular entertainment district is just behind Collins Street, connected by Manchester Lane. The prospect of a revival along the Strip has drawn Sydney hospitality king Justin Hemmes, who earlier this year acquired Tomasseti House at 277-279 Flinders Lane for $ 43 million, which is where the trendy Mill House Bar and Restaurant is located.

Also in the neighborhood, renowned restaurateur Chris Lucas’ Kisume exceeded expectations in July when it was sold to a Melbourne-based private investor group for around $ 25 million at a return of just 2.5 percent.

In October, an eight-story building on Flinders Lane, home to the popular Coda restaurant, launched with expectations of $ 35 million or more, the newest offering in the trendy dining district.

Another Singapore player, HThree City Australia, bought an office tower at 446 Collins Street in Midtown for $ 72,625,000 in September.


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