Iconic Circular Quay restaurant sells for $20.5m

30 January 2023

One of the largest strata retail offerings on the blue ribbon East Circular Quay strip has sold for $20.5 million. The team of agents from Colliers and Plus Agency that sold the property is the same that broke three Australian retail records in the past 12 months on earlier Circular Quay transactions.

Located in a corner ground floor position and leased to renowned Italian restaurant ‘Eastbank’, the 151sqm property at 2/61-69 Macquarie Street, Sydney sold at a rate of $135,761 per sqm.

Colliers National Director Joseph Lin and Steam Leung and Senior Executive Callum Cooke sold the property in conjunction with Fiona Yang, Executive Partner of Plus Agency.

“This sale comes off the back of multiple successful strata retail campaigns run by the Colliers Strata team including a sale of a prime retail café on Macquarie Street for 4.19 per cent yield to another local Asian investor,” Mr Lin said.

Mr Lin continues: “Regardless of recent rate rises and perceived worsening purchaser sentiment within the market, trophy assets such as ‘Eastbank’ have proven to be resilient and are still achieving premium results.”

“Furthermore, long term leases with strong increases have attracted an additional buyer pool of investors seeking sustained, robust returns over short-term capital appreciation,” Mr Cooke added.

The property has a net income of $850,000 per annum with a five-plus-five-plus-ten-year lease structure with 4 per cent annual reviews.

It has a 90sqm licenced outdoor space from Place Management NSW for 72 seats, and an approximately 80sqm external area entitlement for ongoing use under the Strata By-Laws for a further 82 seats.

“Circular Quay is the most expensive retail strip in Australia. In the last 18 months, buyers have paid over $180,000 per sqm for a 16sqm shop. In another two larger transactions handled by Colliers and Plus Agency, buyers paid over $150,000 per sqm for a 75sqm shop and $130,000 per sqm for a 43sqm shop,”

Ms. Yang said.“Investors face headwinds in terms of higher costs of capital and their natural reaction is to seek safety, which results in excellent prices for assets such as this premier Circular Quay retail space.”