Pawson House, the home of Melbourne culinary Institution CODA on the corner of Flinders and Oliver Lane is coming to market with an expected price point of circa $35 million.
The 8-level building not only houses the powerhouse hospitality tenant till 2028, but it has also been the prime location for many well-known Melbourne businesses who have been successful in the epicentre of the CBD’s most sought after tightly held Flinders Lane address.
There are only a handful of sizeable buildings in this pocket, which are historically tightly held and rarely offered to the market. The sales campaign will be steered by Daniel Wolman and Oliver Hay of Colliers via an International Expressions of Interest campaign that will see out one of the final sales of 2021.
The striking and light filled building with so much history and excitement sprawls over two of Melbourne’s most in demand and well know East End lanes, benefitting from being on the corner of Flinders Lane and Oliver Lane. Oliver Lane is home to hospitality institutions such as Lucy Liu and also boasts the rights to Rolex’s authentic watch service centre.
Directly opposite is the former church of Scientology Building, now fully occupied by European Fashion Giant Chanel and which also neighbours the Grant Hyatt Hotel and Louis Vuitton.
Mr Hay said, “This pocket of the CBD is officially recorded as the Flinders Lane East Precinct and is widely regarded by astute investors as the most sought after and seldom traded pockets within the Melbourne CBD Grid. The precinct continues to draw specific interest from world leading fashion houses, hospitality groups and associated businesses. Its not only a once in a lifetime opportunity for investors, it’s an extremely rare opportunity for any global luxury retailer looking for a new home. Directly opposite Chanel’s Australian flagship store – this could be the next opportunity for many of the luxury brands who have been shifting off Collins Street and looking to expand over multiple levels. There is something uniquely special about this pocket of the CBD and this building. It commands the best and will always continue to do so for generations to come.”
141 Flinders Lane is fully leased and offers a strong WALE for a building of its kind, coming in at over 4.5 years and made up of several diverse and growing income streams. It comes to market only several months after another Flinders Lane trophy with anchor hospitality tenant Kisume transacted at a cap rate of approximately 2.30%. Also by Wolman and Hay of Colliers Melbourne City Sales.
Daniel Wolman, Head of Investment Services, Victoria said, “we have experienced in 2021 the overwhelming pent up demand for prime Melbourne CBD assets from local, interstate and offshore investors. When you couple this with the immediate pocket on Flinders Lane between Russel and Exhibition Streets, the competition for an opportunity like Pawson House exceeds to another level.”
“It’s that prestigious ‘Paris End’ of the CBD that excites local and international purchasers. It even ticks a major box for the premium and luxe owner occupiers” Mr Wolman added. “In 2018 we sold 104 Exhibition Street on behalf of the Liberal Party of Victoria, another ‘Paris End’ corner building. The purchaser, Rolex out of Switzerland was looking to establish their headquarters in Melbourne. Pawson House has a similar pedigree and will no doubt entice a similar calibre of brands, particularly as we come out of lockdown. We expect the CBD will explode, tenants, investors, occupiers… you name it. Everyone is eager to get out and live again and we don’t see a better time to invest in prime Flinders Lane real estate.”
141 Flinders Lane comprises an eight-storey retail and commercial building with a net lettable area of approx. 1,541 sqm. The building has been attentively refurbished to maintain the integrity of the original character façade and design while accommodating the demands from modern-day tenants.
Oliver Hay added “The building is well positioned for rental growth when looking at all of the possibilities to value add to this asset. Its not only the conglomeration of international luxury retail brands that want to be at the East End of the CBD, it’s the optionality for Rooftop bars, strata sell downs or simply growing office rents behind 101 Collins Street that will attract investors who will take advantage of the prime tenancies which are so scarce in today’s market and command the highest rents in Melbourne.”
In talking to the current market conditions, Ainsworth Property (A-P) Zelman Ainsworth said “while there is no doubt the demand from major retailers to secure flagship space in the CBD has diminished in the last 18 months, both local and luxury retailers still see Melbourne as the fashion capital of Australia, which has constantly over performed and has been tightly held, particularly in the infamous East End of town. Global retailers are looking at the Melbourne CBD for 2023, with requirements in the market now.”
Pawson House is ideal for family offices or high net worth investors. It will also attract elite global retail investors that “collect” trophy assets in major cities around the world such as Paris, London, New York, Shanghai, Tokyo, Singapore and Hong Kong.
The property also has provision under the planning scheme to see additional levels added to it in the future should someone desire.
An integral part of the Flinders Lane history, the Vendor will be represented by transactions manager Mark Wizel of Advise Transact.
For further information please contact the sales team:
For further information, please contact:
Colliers International
Level 30, 367 Collins Street
Melbourne Vic 3000
Daniel Wolman
Head of Investment Services
Victoria
0412 957 839
[email protected]
Oliver Hay
National Director
Melbourne City Sales
0419 528 540
[email protected]
