Prized Collins St Retail Site Up For Grabs

Premium international retailers are set to line up for what will be one of Melbourne CBD’s most sought-after retail leasing opportunities underpinning the strong run for the retail sector in this country.

CBRE’s Melbourne Retail Services team has secured the exclusive listing, which involves 400sqm of prized Collins Street retail space in the Athenaeum Club’s landmark city premises.

Situated in the heart of Melbourne’s luxury retail precinct, the 85 Collins Street store neighbours retail heavyweights Prada and Hermes and is directly opposite Cartier and Christian Louboutin.

CBRE Associate Director Zelman Ainsworth, who will be handling the leasing, said the shop’s premier location in the city’s most sought after retail pocket was expected to underpin significant global retailer interest.

“It is rare for retail space in this pocket of Collins Street to be taken to the open market,” Mr Ainsworth said.

“However, overwhelming interest from international retailers seeking to secure space within this block of Collins Street has spurred the club’s decision to launch an on market campaign.”

Charter Keck Cramer’s National Director Steve Kingston is advising the Athenaeum Club, one of Australia’s oldest clubs and a proud resident of Collins Street since 1868.

“Given the longevity of retailers at both the club and in immediately adjoining buildings, this is really a once in 15 year opportunity,” Mr Kingston said.

The opportunity has arisen ahead of the impending expiry of existing leases to two separate tenants - Rolex and Ashley Opal Jewellers.

Mr Ainsworth noted that the Melbourne CBD had become of Australia’s most sought after destinations for luxury retailers.

“Australia has been a top performer for international retailers in the past five years, with strong sales and a buoyant Asian tourism market being two of the key attractions for luxury brands seeking flagship retail space,” Mr Ainsworth said.

"Melbourne has been a primary target, with a host of global retailers having either signed new leases entered the Melbourne market for the first time – among them Hermes, Longchamp, Bang & Olufsen, Omega, Coach, TAG, Carter, Christian Louboutin, Rolex, Chopard, Van Cleef and Coach.”
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The campaign at the Athenaeum Club coincides with news that a freehold office and retail building at 10-12 Collins Street, which has been on the market since earlier in the year, has been scheduled for a boardroom auction. The auction will be handled exclusively by the CBRE Melbourne Middle Markets team.

Josh Rutman, Mark Wizel and Kiran Pillai have been appointed by the family who has held the asset for over 40 years.

"We have been seeing incredible levels of local and offshore buyer enquiry for the property, which is not surprising, and our vendors have elected to bring matters to head in a transparent and straightforward manner,” Mr Rutman said"Noting the sorts of tenants that want to have a presence here, the Paris End of Collins Street carries a prestigious status and the opportunity to own a freehold in this precinct is virtually impossible given the longstanding ownership profile.”

Mr Rutman added; “The building provides a terrific opportunity to invest passively, owner occupier or convert to residential or hotel accommodation, subject to relevant approvals.”