This article is from the Australian Property Journal archive
THE Grollo Group is looking to offload four buildings across 1,500 sqm of Melbourne CBD land next to the family’s famous Rialto tower.
Local and international interest is likely for what is anticipated to be a revitalisation of the properties that run up the nightclub precinct of King Street from Flinders Lane, and which the Grollos had accumulated over multiple deals. They include the infamous Inflation nightclub building that was picked up five years ago for $17 million.
Other buildings that include the famous York Butter Factory and Grain Store, which have been part of Melbourne’s history since goldminers stepped off the boats on the Yarra River from the 1850s.
Grollo Group chairman and CEO Lorenz Grollo said the time was right to reactivate and restore the site at the foot of the Rialto complex.
“We made a bold declaration many years ago to change the face of King Street for the sake of Melbourne’s CBD and its many stakeholders, and we are proud that these buildings are now ready for their next stage of evolution”, he added.
JLL’s Josh Rutman, Nick Peden, Will Connolly and MingXuan Li are managing the expressions of interest campaign.
“These properties are a rich part of the fabric of Melbourne’s history and they present an opportunity to capitalise upon the significant growth occurring in the immediate precinct,” Rutman said.
“Each building possesses a distinct character and charm, and boasts dual street presence along both King Street and Geddes Lane which could provide for a range of quality outcomes, including high end boutique hotel, quality commercial office or a landmark food and beverage venue”, Rutman said.
Several hospitality players have made significant investments into the restoration of older buildings in the Melbourne CBD in recent likes. Justin Hemmes’ Merivale Group has acquired properties on Flinders Lane and, in August, Meyers Place, and Chris Lucas is set to open a new $10 million French cuisine concept in a series of heritage buildings in Bourke Street.
The precinct surrounding the corner of King and Collins Streets has seen extensive development in the past few years. Directly opposite the properties, Charter Hall has completed stage one of its 555 Collins Street office tower, which is home to Amazon, Aware Super, Allianz and Ericsson. Hotel Esplanade owner Sand Hill Road is also embarking upon a new multi-level hospitality development at the Waterside Hotel just to the south over King Street.
Grollo Group is headed up by Lorenz Grollo. The Grollo family operated Grocon, which developed the Rialto towers in the 1980s a joint venture with St Martins. Brothers Rino and Bruno divvied up the business in 2000, respectively taking the stake in the Rialto buildings and Grocon.
