Melbourne CBD Icons Paired Together in Landmark Deal
In an unprecedented pairing of Melbourne CBD icons, the Hopetoun Tea Rooms will reopen in the Kozminksy building at 421 Bourke Street, breathing new life into the historic landmark in the heart of the city.
Fitzroys Directors, Rick Berry and Rob Harrington introduced the property to Hopetoun and negotiated the lease.
Constructed in 1859, the 380sqm three-storey building is on the corner of laneway McKillop Street, moments from Bourke Street Mall.
It was built as a single-storey bluestone office for stock and station agency Kaye Butchart & Co., and a 2nd storey and stucco façade were added within 10 years. The Commercial Bank of Australia’s 1st-ever branch occupied the building from the 1880s, with a 3rd floor added for the lender in 1919.
More recently, the building was home for over 4 decades to the 169-year-old jewellery institution Kozminsky.
“Arriving at a time of renewed optimism for the city, this is one of the most notable CBD retail leasing deals of 2020,” Berry said.
“This is an unprecedented pairing of Melbourne CBD icons, and of the city’s past and future.
“The Kozminsky building has been unoccupied since the jeweller relocated, and the fact that this lease has been struck at this time demonstrates a huge confidence in the future of the Melbourne CBD.
“People are looking forward to authentic Melbourne experiences after being away from the CBD for an extended period.”
Berry said hospitality experiences are an intrinsic part of the soul and history of Melbourne.
“Melbourne’s city culture resonates with locals, with Australians and with tourists from all over the world.”
He said hospitality groups have shown interest in the building for some time. “It is appropriate that such a famous Melbourne identity will take up this icon.”
As well as being close to Bourke Street Mall, the city’s major shopping thoroughfare, the immediate location’s long-term future is further underpinned by the new Brookfield/ISPT- owned NAB headquarters at 405 Bourke Street and Cbus Property’s neighbouring $1 billion office tower project at 435 Bourke Street.
Berry said retail leasing activity has picked up in the CBD towards the end of 2020.
“We’ve been surprised by the volume of enquiry and the number of CBD lease deals we have finalised during November and December, and it looks like this activity will continue right throughout the break,” he said.
“The CBD is still relatively quiet, and the return of office workers into 2021, and ongoing easing of restrictions for cafés and hospitality venues should underpin a fresh round of leasing activity early next year.
“We have more than 15 CBD retail leasing negotiations underway right now, so February should see a string of new retailers opening up, which is great news for the CBD.
“Enquiry has come for all types of retail spaces. As well as landmark buildings, the city’s laneways have been also been attracting plenty of attention. Operators and Melburnians have been keenly anticipating the return of the hustle and bustle to the city, and the vitality of the landmarks and laneways that makes the Melbourne CBD so celebrated.”
Fitzroys has just secured multiple leasing deals to hospitality operators in Equitable Place, including a 7sqm space carved out of a disused lift shaft for cult hot chocolate specialists Mörk, as well as within the historic Manchester House, fronting Manchester Lane. Last week, Fitzroys finalised leases with a manufacturing jeweller for the 600sqm gallery level at 271 Collins Street, and a health provider for 90sqm in the building’s Elizabeth Street frontage.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2020 Fitzroys.