Long Lease Marks Capital Spot
The Age
Saturday July 27, 2002
Centrally located in Melbourne's CBD, the six-level building at 193-199 Bourke Street is fully leased to two long-standing tenants and has a current passing net rental of $391,000 per annum.
The property, which stands between Russell and Swanston Streets, is east of the Bourke Street Mall, opposite the Village Cinema complex.
Neighbours include the Commonwealth Bank and retailers such as KFC, Surf Dive n Ski and Priceline.
Major tenant Tabcorp occupies the ground floor as a TAB agency, plus basement, and has recently exercised its option for a further five-year lease, with the rental reviewed to the market.
The upper floors (one to four) are leased to Drumlight Inn, trading as the Carlton Hotel, a bar and accommodation business, originally started by Carlton & United Breweries, which has operated for more than 60 years.
On level one is the bar/entertainment venue with budget accommodation.
On floors two, three and four are 26 separate rooms and dormitories, with a total of 72 beds, with shared bathroom facilities on each level.
The building stands on a 360-square-metre site and is zoned Capital City Zone 1 under the Melbourne Planning Scheme, with 14 metres of frontage to Bourke Street and rear access via Donaldson Lane.
Selling agent Clinton Baxter, from Knight Frank, said the ground floor had been fully refurbished.
The property, he said, could be subdivided, subject to council approval, because it has a wide frontage.
He said the property's location benefitted from its proximity to the Village Cinema complex opposite (which attracts a substantial evening trade), Bourke Street Mall, about 150 metres away, and the RMIT Business School close by.
The redevelopment of the Southern Cross site, which is one block away, would also benefit the property, he said.
``This is an outstanding investment property with a first-class location, long leases to quality, long-term tenants and excellent potential for future improvement to the upper levels," he said.
``The offering provides investors the opportunity for a stable cash flow from proven tenants while taking advantage of the significant upside of the Melbourne CBD commercial market and the property's strategic location."
The property will be auctioned on Thursday, August 1, at 1pm on site, and is expected to sell for at least $4.8 million.
For further information call Clinton Baxter on 9602 5722.
© 2002 The Age
