Fitzroys’ Chris Kombi negotiated the off-market sale of 267 Little Collins Street on behalf of Central City Holdings Pty Ltd.

The sale price reflected a sharp initial yield of 1.3%, and huge land rate of $41,625 per sqm.

The freestanding 380sqm Art Deco building comprises three levels with retail on the ground floor and new global music bar Fika Island over levels two and three. It returns a combined $110,000 per annum net, with a 5+5-year lease to Fika Island and a monthly agreement on the ground floor.

A private investor is the purchaser.

“Even with further interest rate rises expected, investors still clearly consider CBD freeholds to be a safe place to put their money in the medium-term and this part of the market remains very competitive,” Kombi said.

“It’s another show of faith investors have in the future of the CBD. There’s widespread confidence that visitation rates will continue trending upwards and we’ve already seen a great rebound in night-time and weekend numbers,” Kombi said. City of Melbourne pedestrian traffic data shows night-time activity is up across the CBD’s dining precincts, and weekend visitation throughout the Grand Prix, Comedy Festival and early footy season was recorded at higher than pre-pandemic levels. Fika Island is one of a number of new bars and hospitality venues that have recently opened as operators look capture the spike in activity.

“The property also serves as an excellent landbank opportunity. The 203sqm site is zoned Capital City 1 and the purchaser can earn a significant income stream from a secure lease while assessing its longer-term options,” Kombi said.

The property is in a thriving CBD location located between Swanston and Elizabeth Streets, opposite The Walk, diagonally opposite David Jones and neighbouring Howey Place

Shopping Arcade and close to Royal Arcade and Block Arcade. Nearby retailers include T2, Seiko, Maje, Hunt leather, Patagonia, Scanlan Theodore, and Hype DC.

To request a sales analysis please contact the selling agent Fitzroys’ Chris Kombi via the below contact details.