Melbourne’s longest-running Indian restaurant going under the hammer this month
The home of Melbourne’s longest-running Indian restaurant has been put up for sale, offering investors the chance to secure one of the city’s strongest hospitality holdings.
The Spencer Street property on the ground floor of the four-star Grand Hotel is leased to Gaylord Restaurant, which has been in operation in Melbourne’s CBD since 1985.
While the Indian eatery is renowned across the city, it is the tenant’s multiple income streams that may be the ultimate lure for buyers when the property is put on the block at Burgess Rawson’s Portfolio Auction on Wednesday, June 24.
Burgess Rawson’s Zomart He, who is marketing the prime CBD corner property with Shaun Venables, said there were multiple strings to the operator’s bow.
“The business is a combination of the restaurant, a bar, conference facility and it also provides the catering for the entire hotel,” Mr He said.
“As a key part of the four-star hotel’s operation, the restaurant provides breakfast, lunch and dinner service for its 118 rooms.”
Mr He said while many food and beverage operations had been affected in the current environment, the property at 33 Spencer Street was afforded significant security by its multiple revenue streams, along with its exceptional location.
The property comes with a brand new four-year lease, plus options to 2036, with fixed 3% annual rent increases ensuring strong rental growth.
It currently returns $260,000 per annual plus GST and includes approximately 350sqm of open-plan floorspace on the ground level, along with an alfresco area fronting busy Spencer street.
It is also positioned close to Crown Casino, Southern Cross Station and Flinders Street Station, while all of Melbourne’s major city landmarks are within walking distance.
Burgess Rawson’s 137th Investment Portfolio Auction will be held in Crown Casino’s River Room from 10.30am on Wednesday, June 24. In-room attendance will be restricted to 50 pre-registered bidders, with online and external bidding facilities available to other buyers.