George Calombaris says it’s “business as usual” as the building housing his Hellenic Republic restaurant in Brunswick has been sold for $2.375 million.
The chef told Neos Kosmos that the restaurant won’t be affected, as he has secured an ongoing ten-year lease before the building was sold.
The sale went 15 per cent above the reserve, after five interested parties pushed up the price.
It means the new tenants will be netting a return of $120,000 per annum plus outgoings and GST, and includes a tenant bank guarantee of six months rental.
Real Estate agency Fitzroys said the property generated a significant level of interest from local and interstate investors not only due to the high profile nature of the tenant but also its generous site proportions and rapidly evolving inner north location.
“The demographics of Brunswick East have undergone a transformation in recent years, with the gentrification of the area resulting in a wave of affluent home owners settling in the area, improving the economic viability of the Lygon Street retail precinct,” Fitzroys Director Chris Kombi said.
“Accordingly, we have witnessed a significant amount of development within the immediate and broader vicinity of the subject property. This strong demand for inner city living has resulted in an escalation of residential values in the area.”
The sale comes after Calombaris’ restaurant group, Made Establishment has been rethinking its business model.
It has closed a number of under-performing restaurants, including the recent Manu Feidel collaboration Le Grand Cirque, and will be looking to buy smaller buildings with lower rent and spend less on refurbishing the spaces.