Property veteran to turbocharge King Street Revival

Melbourne 20 September 2023 – Following the strategic long-term acquisition of four adjoining freehold buildings in the Melbourne CBD, the Grollo Group is offering up the opportunity to partake in a major revitalisation project, which is expected to attract significant local and international interest.

The properties, located on the corner of Flinders Lane and King Street, comprise a series of striking historic buildings that include the famous York Butter Factory and Grain Store, which have been part of Melbourne’s history since goldminers stepped off the boats on the Yarra River from the 1850s.

Grollo Group Chairman and CEO Lorenz Grollo said the time was right to reactivate and restore the site at the foot of the Rialto complex.

“The Rialto was a pioneering building 40 years ago and now the area has become a rapidly expanding mixed use precinct,” he said.

“We made a bold declaration many years ago to change the face of King Street for the sake of Melbourne’s CBD and its many stakeholders, and we are proud that these buildings are now ready for their next stage of evolution”, he added.

Set upon a triple-fronted landholding of almost 1,500sqm, the four standalone buildings are being offered as a whole by international expressions of interest.

“These properties are a rich part of the fabric of Melbourne’s history and they present an opportunity to capitalise upon the significant growth occurring in the immediate precinct,” said JLL Executive Director and Head of Capital Markets Josh Rutman, who is handling the international campaign alongside colleagues Nick Peden, Will Connolly and MingXuan Li.

“Each building possesses a distinct character and charm, and boasts dual street presence along both King Street and Geddes Lane which could provide for a range of quality outcomes, including high end boutique hotel, quality commercial office or a landmark food and beverage venue”, Mr Rutman added.

Several hospitality players have made significant investments into the restoration of older buildings in the Melbourne CBD, with the likes of Justin Hemmes’ Merivale Group acquiring two properties within three years, and Chris Lucas set to open a new French cuisine concept in series of heritage buildings in Bourke Street.

“We are looking for a local or international partner that sees the immense potential of the area and the opportunity to create a new landmark that will leverage off the substantial growth of the precinct”

The precinct surrounding the corner of King and Collins Streets has seen extensive development in the past few years with major tech occupiers moving into the precinct and a number of new office buildings recently completed or under construction.

Mr Peden said “One only needs to look within a square block of the property where some of the most significant developments are either underway or recently completed.” 

Directly opposite the properties, Charter Hall has completed stage 1 of their 555 Collins Street office tower, which is home to Amazon, Aware Super and Allianz. Espy Hotel founder Sand Hill Road is also embarking upon a new multi-level hospitality development at the Waterside Hotel on King Street.