Restaurant Sale

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The syndicate headed by the Melbourne restaurateur Guy Grossi has secured around $7.25 million for the Bottega restaurant premises.
The unconfirmed deal for the Bourke Street premises was struck on an estimated 2.9 per cent yield.
The selling price was well above the initial $5 million-plus expectations when it was listed for sale last month.
More than 250 parties inspected the premises, with 15 formal offers, including three parties who travelled from Asia to inspect the property.
The Melbourne CBD building housing Italian restaurant Bottega offered a 254sq m floorplan and 198sq m landholding.
Savills Australia agents Clinton Baxter, Nick Peden and Benson Zhou were selling the property via an expressions of interest campaign.
Marketing it as an “extremely rare CBD freehold investment” with the restaurant recently extending its lease to paying “a modest rental” of $211,940 per year.
Bottega is run by restaurateur Denis Lucey.
Grossi owns the 1880s-built two-storey building with his wife Melissa, sister along with business partner Liz Rodriguez and her husband, Grossi executive chef Chris Rodriguez. 
Grossi, a judge on My Kitchen Rules, and his partners paid $2.375 million in late 2001 for <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-502772874" target="_blank">72-74 Bourke Street</a>.
Savills Australia agent Clinton Baxter told the Herald Sun the buyer was a local private investor with other CBD property holdings.
“The scarcity of Melbourne CBD properties on the market, particularly below $10 million, is … resulting in significant pent-up demand,” he said.
 
 
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Guy Grossi syndicate sells Bottega restaurant premises 

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Celebrity chef George Calombaris' Gazi and The Press Club restaurants in Melbourne's CBD have been sold to listed Singaporean real estate investment trust REIT Keppel for $8.61 million.
The restaurants, 2 Exhibition Street and 52 &amp; 72 Flinders Street Melbourne were sold through an expressions of interest campaign in conjunction with CBRE’s Josh Rutman, Mark Wizel and Paul Tzamalis in conjunction with Fitzroys Chris Kombi and Paul Burns on behalf of vendor Cerberos Pty Ltd. <a href="/expert-insights/buying/26-finding/commercial-investment/leisure/43017-the-press-club-and-gazi-premises-for-sale" target="_blank" style="line-height: 1.3em;">Listings opened late May</a>, with expectations of around $9 million.
Gazi and The Press Club attracts more than 170,000 visitors each year. 
Keppel REIT owns a 50% stake in the 2-8 Exhibition Street office development and two retail units and all five retail units at 2-8 Exhibition Street.
The property was sold with a long-term lease.
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George Calombaris' Gazi, The Press Club sold for $8.61 million

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Campari House, at one of Melbourne’s most iconic CBD laneways, has sold for $8.1 million at CBRE auction.
Located at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-501695217" target="_blank">21-25 Hardware Lane</a>, the four level building is one of Melbourne’s best known dining destinations.
It comprises two commercial kitchens, restaurant, private guest room and rooftop bar. Fully leased, the marketing suggested its net passing rental income was $337,631p.a.
It was historically occupied by Kirk’s horse bazaar – a horse and livery trading centre built in 1840 by James Bowie Kirk.
Benefitting from a high volume of foot traffic, the Hardware Lane secured a record land price of $45,505 per square metre.
There were six bidders contesting the auction, coming locally and from offshore.
The vendors only purchased the property two years ago at $5.999 million in July 2013, having sold at $4.7 million in 2009.
CBRE City Sales is preparing to take to auction nearby 30 Guildford Lane – a double storey, refurbished warehouse building for October 30 auction. It last traded at $1.76 million in 2008.
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Hardware Lane restaurant offering snapped up at auction

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The site of Katoomba restaurant, Pins on Lurline, and its Federation home and guest house, have been bought by a young family for an undisclosed sum.
The 132 Lurline Street property, built in 1898 by local businessman H. A. Bundy, was sold through an expression of interest campaign which closed in March.
The deal was brokered by Gunning Real Estate sales agent Tom Speakman on behalf of Blue Mountains restaurateurs Simon and Keiko Kjelgaard, who purchased the property in 2012. 
“They are very pleased with the outcome and are excited to move forward with their plans to move to Japan after more than 20 years operating the Pins brand in the Blue Mountains and four years on Lurline Street,” Speakman said.
“The new owner will be running the restaurant themselves and renting out the guest house as a business. They are looking for a change of pace and will relocate from the Sydney CBD. It is an exciting adventure for them as they have a young family and no restaurant experience."
The restaurant seats 60 people. The property has a self-contained garden holiday cottage, Keiko’s Nest as well as a private residence with three bedrooms, Speakman said.
The original house was designed to be built ‘out in the bush’ and the owners operated a small tearoom in the hustle and bustle of Katoomba main street, its website says. 
Pins, formerly known as Pins And Noodles, originated in Katoomba Street some 20 years ago and moved to Leura village before finally coming to rest in Lurline Street, hence the new name, ‘Pins On Lurline’.
 
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Blue Mountains restaurant Pins on Lurline sells

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The American burger franchise Carl's Jr has opened it's first Australian store on the NSW Central Coast.
The controversial burger chain, known for for their raunchy TV ads, has huge expansion plans for Australia, targeting 300 restaurant sites in the next 10 to 15 years.
Carls Jr, which already has food joints in 30 countries is positioned next to McDonald's in the Bateau Bay area.
Carl Jr's created its own publicity stunt - offering a year's supply of free burgers to the first 50 people through the door of their grand opening, with a burger fan lining up since Sunday night for his share.
Carl's Jr are already <a href="https://www.propertyobserver.com.au/https://www.seekcommercial.com.au/business-listing/carls-jr-franchising-australia-global-leaders-in-restaurant-franchising/179823" target="_blank">advertising the opportunity to potential franchises</a> as they look to continue their expansion.
The Bateau Bay store's franchisee Lindsey Brennan owns 18 liquor stores across the region and has a licence for 10 new Carl's Jr restaurants across the central and northern New South Wales coasts.
The Carl's Jr TV ads have caused a stir amongst onlookers, with Paris Hilton and Kate Upton having worn next to nothing on the US advertisements.
One of the most recent clips featured model Charlotte McKinney was banned from the 2015 Superbowl.
They haven't looked to clean up the promotion in Australia either.
The Carl's Jr Australia ad was reported to the Advertising Standards Board after being aired on Channel 10 after the Big Bash League during December and January with local model Gemie Howe.
The advertisement will be reviewed at the next ASB board meeting.
The 300 planned restaurants will take a sizeable chunk of the burger monopoly across Australia.
Australia has been a highly successful franchise step for burger joints, with McDonalds opening their first restaurant in Yangoona in 1971.
They now have 900 stores across Australia.
Hungry Jacks have 390 and the supposed healthier burger choice Grill'd has 122 locations, however founder Simon Moore targeted another 200 across Australia in 2014.
Among new entrants to the market are​ Mary's, Chur Burger Express, Burger Project, Burger Edge, Burger Shed, Ribs &amp; Burgers, Burger Bro? and Melbourne's Brother Burgers. 
Director of retail listing at Frank Knight Alex Alamsyah recently told Fairfax Media it is unlikely to see Carl's on pricey prime streets in Sydney's CBD.
"Global burger chains like Carl's Jr, and Johnny Rockets from America and MOS burger from Japan are looking at prime streets in Sydney's CBD, but appear reluctant to make a move, as rental in prime George Street could hit $5000 per sqm per annum."
Carolyn Cummins of the Sydney Morning Herald noted that McDonalds is paying roughly $1.25 million a year for their 250 sqm spot in central Sydney and Hungry Jacks's is paying $1.65 million a year for the whole building at 640 George Street. 
Franchisee Lindsey will hope Carl's Jr doesn't follow in the footsteps of Urban Burger. Two of their three outlets were sold off in Melbourne's Balaclava and Middle Park in 2014. 
Ned Lyerly, Carl's Jr president of international doesn't have that concern.
"We've done extensive research ourselves," said Lyerly.
"It's a $16 billion market today and will continue to grow, so I think the market itself is large enough to sustain that sort of operation"
"We compete favourably with all [quick service restaurants]... and believe with the right partners, that those numbers are meetable."
<a href="/expert-insights/investing/21308-us-burger-chain-carls-jr-plans-to-open-300-stores-in-australia-over-the-next-decade" target="_blank">Chief executive Andy Puzder told The Australian Financial Review in 2013</a> that their success in New Zealand energised the interest in Australia and they want to take advantage of that.
They already have eight shops in New Zealand and plan to open another 50.
 
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American burger joint Carl's Jr opens on NSW Central Coast

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The operator of Jamie's Italian restaurants across Australia and many other well known dining establishments has gone into receivership after failing to negotiate continued lending arrangements with its financiers, KKR and Olympus Capital.
Ferrier Hodgson's Morgan Kelly and Ryan Eagle have been appointed receivers and managers to the Keystone Hospitality Group, which is owned by a group of private Sydney investors.
The venues will be sold off.
"The venues in the Keystone Group comprise some of the most iconic and well-known brands in their respective markets," Morgan Kelly said.
"The sale of the group represents a unique opportunity for the right operator and is particularly suited to hospitality specialists interested in expansion." 
Employees would continue on the same terms and conditions as prior to the appointment of the receivers for the time being.
The 17 restaurants include Bungalow 8, Cargo Bar, Chophouse Perth, Chophouse Sydney, Gazebo, Jamie's Italian Sydney, Jamie's Italian Perth, Jamie's Italian Canberra, Jamie's Italian Brisbane, Jamie's Italian Adelaide, Jamie's Italian Trattoria, Kingsleys Brisbane, Kingsleys Woolloomooloo, Manly Wine, Sugarmill Hotel, The Rook on York Street and The Winery in Potts Point.
Last night Keystone executive Richard Facioni and MD John Duncan issued a statement saying the business was “operationally strong”, with more than 1,000 employees nationally, but blamed debt used to expand the business, as well as Sydney’s lockout laws, for the failure of the group.
In March, Keystone put the the business it all started with 16 years ago, Cargo Bar, at Sydney’s King Street Wharf, on the market through Ray White Hotels saying it was shifting towards more food-focused ventures.
But a buyer had yet to be found for the Cargo Bar.
John Duncan told The Shout website that the lockout laws had not influenced the group’s decision to list the Cargo Bar as the venue had continued to trade strongly and the recent development of Barangaroo was great for the area.  
Their earlier sale of the Newtown Hotel was due to an unsolicited approach from another hotel group.
“The sale process is expected to commence shortly,” Mr Kelly said. 
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Upmarket Keystone Hospitality Group restaurants set for sale

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A property in Melbourne’s renowned Lygon Street restaurant precinct recently sold to a local buyer for $2.58 million at auction.
Currently leased to Lygon Charcoal Grill &amp; Steakhouse, the <a href="https://www.commercialrealestate.com.au/property/120-lygon-street-carlton-vic-3053-2012604703" target="_blank">120 Lygon Street</a>, Carlton property is on a new 10-year lease plus three five-year extensions. 
It returns an annual rental of $95,000 per annum plus outgoings. At the sale price, the yield works out at 3.68%. 
The property is nearly 307 sqm and comprises a main dining area, function room, fully equipped kitchen, undercover alfresco seating on Lygon Street, a one-bedroom apartment on the third level and rear car park. 
The selling agents were Charles Cini and Anthony Carbone of CVA Property Consultants.
 
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Restaurant in Melbourne's Carlton cooks up $2.58 million at auction 

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Chef Shannon Bennett has sold a majority stake in his hospitality empire to Singapore's wealthiest family for around $15 million.
The deal with billionaire brothers Robert and Philip Ng involves a portfolio of the city's top eateries, including flagship restaurant Vue de Monde and the Burnham Beeches redevelopment project.
He will act as the culinary brand ambassador for what is tipped to be a substantial restaurant expansion into Asia and the United States by Golden Developments, a subsidiary of Far East Organization, Singapore's largest private property developer.
The deal did not include any freehold property.
Forbes magazine estimates the owners the Ng brothers' fortune at $8.7 billion.
The deal, which valued the Vue Group's at $22.5 million, has not been formally announced by either party but contained in documents lodged with the Australian Securities and Investment Commission, obtained by The Age.
Bennett, who retains a 35 per cent ownership stake in Vue Group, opened his first restaurant in 2000. The flagship Vue de Monde restaurant, on the 55th floor of the Rialto in 2011, regained its third hat at The Age Good Food Guide awards in September.
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Shannon Bennett takes on Singaporean partners

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An award-winning restaurant/function centre set on more than 6.88 ha in Olinda, Victoria has sold for $2.5 million through Ray White after a price reduction.
Olinda Tea House, Wedding, Conference Centre and Flower Farm at <a href="https://www.realcommercial.com.au/property-hotel+leisure-vic-olinda-502134650" target="_blank">86 Olinda Monbulk Road, Olinda, Vic 3788</a> is one of the most iconic venues across the Dandenong Ranges, according to the property’s description.
The property's features include a restaurant/function centre with clear-span dining area, commercial kitchen, guest/staff amenities and office facilities.
Designed by Smith + Tracey Architects this eco-friendly and award winning building is oriented to maximize north solar access and views down the valley. Solar panels run along the rooftop for energy efficiency.
Other features include a four-bedroom residence with its own private driveway and gardens. Around an hour's drive from the CBD in one of Victoria's premier tourist precincts.
The flower farm is leased. 
The property was listed in September 2015 for $3.6 million and spent 523 days on the market, according to RP Data.
<div title="Paul Waterhouse">The selling agents were Paul Waterhouse and Stefanie Taylor.</div>
 
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Olinda Tea House sells for $2.5 million

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A restaurant in Melbourne's Camberwell sold after the auction recorded 290 bids and set a benchmark yield for a retail property in the blue-chip suburb of 2.34 percent.
The sale of the restaurant, Tandoori Den at 261 Camberwell Road, Camberwell to a private investor for $2.509 million reflected a land rate of $12,400sqm.
Fitzroys agent David Bourke said five bidders competed at the auction after the campaign received strong enquiry from local and offshore buyers.
“There is an estimated 1,500 new apartments about to come online or in the pipeline around Burke Road and Camberwell Junction, with a new 12-storey apartment tower near Aerial the latest development to be approved," he said.
The 180sqm part-two storey building is on a 202sqm site and sold with a secure 5+5+5+5-year lease at a building rate of $13,939 per sqm.
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