Sweet Deal a New Record for Australian Retail Property

The ship has finally come back in for Australia’s most expensive retail strip, leaving a record-breaking wake in its path on Sydney’s harbourfront. 

The Opera Quays boulevard at Circular Quay has emerged from the pandemic doldrums with a new benchmark $11.5-million sale of one of its 19 retail tenancies. 

It reflects a rate of $153,358 per sq m—about $20,000 per sq m higher than the previous record set only a few months earlier. 

The 75sq m strata-titled holding at Lot 10 1A Macquarie Street has been off-loaded by Sydney’s prominent property-developing Kazal family. 

It was sold days before it was due to go under the hammer. 

All parties involved in the deal were tight-lipped when contacted by The Urban Developer but according to industry sources it is understood to have been sold to a local Chinese buyer. 

The freehold ground-floor retail asset is occupied by a Guylian Belgian Chocolate Café on a five-year lease with a five-year option. It was transacted on a net yield of 4.8 per cent. 

Close to the steps of the Opera House with views across to the Harbour Bridge and Circular Quay terminals, the property attracted more than 100 inquiries.

▲ The Opera Quays retail tenancy, leased to the Guylian Belgian Chocolate Café, sold for a record $153,358 per square metre.

“Circular Quay forms one of the most expensive and competitive retail markets in Australia,” Colliers national director of Asia markets Joseph Lin said.  

“With Lot 10 holding an extremely rare and valuable restaurant license and long-term secure covenant … we received genuine local and interstate interest from well-known Asian demographic hotspots with particular influence from Sydney and Melbourne’s affluent high-net-worth privates.” 

Lin and Colliers colleague Angus Windred took the asset to market in conjunction with Plus Agency’s Peter Li, Fiona Yang and Leanne Pan. 

“Guylian Belgian Chocolate Cafe provided a valuable corner position with exclusive outdoor dining space offering picturesque harbour views … a showpiece for anyone’s portfolio, we certainly aren’t surprised with the result,” Windred said. 

The previous Australian retail record of $132,558 per sq m was set only a few months ago with the $5.7-million sale of the neighbouring Lot 11, which is occupied by Coco Bubble Tea and was also divested by the Kazal family. 

In recent months, deals totalling $21.25 million have transacted on Circular Quay’s Macquarie Street. 

“Prior to the sale of both Lot 10 and 11, the previous Australian record was also set in Circular Quay just over a year ago, with a 44sq m shopfront selling at a rate of around $113,000 a sq m,” Fiona Yang said. 

“This signifies an increase of almost 40 per cent in capital values in a year.”