Prized Paris End shop for surprise lease
One of Melbourne’s highest profile and distinctive commercial properties is for lease after Coles made the surprise decision to vacate – part of plans to exit the small convenience trade.
The ground floor space at 31-33 Bourke Street – the former State Savings Bank of Victoria East branch, c1906 – is expected to find favour with restaurateurs, neighbouring assets owned by two of the country’s most successful hospitality operators – Chris Lucas and Justin Hemmes.
Containing 167 square metres with a 126 sqm potential courtyard facing Meyers Place, it is also diagonally adjacent to the ex-Job’s Warehouse, which the O’Brien Group is repurposing as a $50 million hospitality venue, the former Becco on Crossley St, which restaurateur Andrew McConnell recently seized control of, and Pellegrini’s.
In the pocket too, considered since the 1960s the city’s Paris End, is a Meridien hotel which recently opened incorporating the historic Palace Theatre shell.
An upgrade and refurbishment of 31-33 Bourke St was undertaken prior to Coles moving in five years ago; the fixtures, which remain, could appeal to another convenience store operator, or traditional retailer, like a boutique.
MGO Property’s Martin O’Halloran is the agent.
Hospitality hotspot
Coles sub-let 31-33 Bourke St for an Express store following an off-market deal with 7-Eleven.
For 25 years prior, the building was home to Thomas’ Music.
Mr O’Halloran expects the property’s appeal to a hospitality business will be high following Mr Lucas opening exclusive French eatery Maison Bâtard in October.
After a fit out costing eight figures, the value of that building, 23-29 Bourke St, for years housing the Society restaurant, is speculated to circle $50m, he added.
Mr Lucas also just opened venues (including a new Society) at 80 Collins St, on the north west corner of Exhibition – a couple of hundred metres from 31-33 Bourke St.
Last August meanwhile, high-profile Sydney based restaurateur, billionaire Justin Hemmes, outlaid c$15m for the Art Deco Kantay House at 12-18 Meyers Pl, it is believed for longer-term occupation (story continues below).
“This is the heart of the Spring Street end of the city, with restaurants and niche businesses in historic low-rise buildings, many off laneways,” Mr O’Halloran said.
“As well as Andrew McConnell and the O’Brien Group, the precinct occupies treasured restaurants Grossi Florentino, Pellegrini’s and The Melbourne Supper Club,” he added.
“There is also a myriad of boutique stores such as bookshops The Hill of Content and The Paperback, fashion outlets The Marais and American Tailors and the Funaki gallery,” according to the executive.
“In the immediate area too are theatres, the Princess, Comedy and Her Majesty’s, and a 5-star Meridien which opened in late 2023”.
High footfall
Mr O’Halloran also expects 31-33 Bourke St to appeal to convenience retail type businesses, with nothing to spend – the contemporary fit-out including Gondola shelving/racking, counters, a cool room and storage.
Associated specialist businesses – bakeries like Lume, Laurent, Brunetti’s and Toscano’s – would also target properties in Melbourne’s Paris-end, considered the city’s most exclusive retail precinct.
Part of the outdoor area is presently configured for car parking and with storerooms, one refrigerated.
The completion of the Maison Bâtard renovation and Meridien across the road has changed the area’s ambiance this time, Mr O’Halloran said.
An increase in the number of white-collar employees, particularly in government sectors (31-33 Bourke St being near the corner of Spring St and Parliament House), has also improved the atmosphere, he added.
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