Local investor snaps up Campari House
A local businessman has bought the CBD drinking and dining institution Campari House.
The four-level renovated retail space at 23-25 Hardware Lane sold five months after it initially went to auction for $5,999,000, on a yield of 5.01 per cent.
The restaurant has traded almost entirely as Campari House since 1968 but was also known as Campari Bistro or, more recently, Campari.
The property has changed hands several times over the previous 13 years.
It was sold by a Dubai-based investor who paid $4.7 million for the property in 2009 when he bought it from restaurateur Nick Zampelis.
Zampelis himself paid $1.46 million for the restaurant in 2000.
In a sign of returning confidence among private investors, Campari sold at a 10 per cent premium from what was offered, and rejected, when it went to auction last year, CBRE selling agent Josh Rutman said.
Last year's October auction attracted a crowd of more than 200 people but failed to get interest above $5,500,000 on the day, he said.
A review of recent sales suggests strong demand in the sub-$10 million retail investment market, CBRE researcher Kevin Tong said.
Seven deals worth $1 million to $10 million were finalised in the past three months.
"We have seen an uptick over the past couple of months with circa $33 million invested across 10 recent transactions by a mix of both local and overseas investors," he said.
Other recent sub-$10 million transactions include 198-200 Little Lonsdale Street, with tenant Don Don Japanese restaurant, for $2,300,000 on a yield of 6.52 per cent.
Further up the street 470-472 Little Lonsdale sold for $2,601,000 on a yield of 5.81 per cent.
"Local investors are really coming back when it comes to purchasing a passive investment as an alternative to term deposits or the sharemarket," Mr Rutman said.