This article is from the Australian Property Journal archive
FAST food chain Hungry Jack’s has leased 500 sqm retail space at 260 La Trobe St to open its new CBD flagship after it was displaced by the Metro Tunnel.
Fitzroys’ Terence Yeh and Alex Shum negotiated the 15-year lease for the ground
floor of 260 La Trobe St, also known as the A-C Building, on the corner of Elizabeth and La Trobe streets in Melbourne’s CBD, at a commencing rental of more than $700,000 per annum gross on behalf of Landream.
It was the first leasing campaign for the space in around 20 years, following an extended period of tenure by Endeavour College of Natural Health.
Hungry Jack’s will use the space as its CBD flagship site. The fast food giant along with McDonald’s and KFC were some of the tenants displaced by the Metro Tunnel project.
“Hungry Jack’s won out from hot competition between local and international operators, and we were inundated with a wide range of retailers who have been seeking a high profile location following the Metro Tunnel works shake-up,” Yeh said.
“Across the board, this ranged from major fast food operators, hospitality operators, convenience stores, financial institutions and restaurants, chain retailers, and medical and specialty groups.
“We did receive high levels of interest from various Chinese restaurant operators with existing CBD stores. This is consistent with the northern end on Elizabeth Street continuing to evolve and owners in the area should expect to benefit from increasing rental values,” he added.
Shum said the space has a high-exposure 50-metre frontage to one the CBD’s busiest corners, and offered rare strategically positioned opportunity among high-density developments, with an estimated 10,000 apartments being constructed within close proximity, and operators of all types are looking to capitalise on its growth prospects.
Yeh and Shum have also been negotiating with local and offshore parties, including a number of Asian operators, looking to lease 423-425 Elizabeth St. The 280 sqm building is available for the first time in three decades, and was the long-term home of Spot On Motorcycles which has just moved to North Melbourne.
Australian Property Journal
