Silk Road on a new journey
The deal comes as Melbourne's restaurant and nightclub industry continues to struggle with tough trading conditions that are pushing operators to the wall and causing a number of high-profile venues to be sold off or closed.
Mr Zampelis, whose hospitality empire has included more than 60 eateries and bars, opened Silk Road in 2008 after spending up to $10million on a luxury refurbishment.
Silk Road - an opulent three-level complex with a restaurant, eight bars and two private suites - has been an exclusive playground for the rich and famous, including Kim Kardashian, Beyonce, Jay-Z and Jason Statham.
Industry sources say the leasehold for Silk Road, which is located in the former Shakespeare Hotel, has likely sold for between $3 million and $3.5 million. But Mr Zampelis denied the club had been sold. "It's not unconditional. We are considering a number of offers and we're hoping to get more than the figure you're saying."
In 2010, Shane Warne and Hawthorn star Dermott Brereton nearly paid $3.5 million for a stake in the club, but the cricketing legend chose instead to open Club 23 in Crown. The new buyer is believed to be associated with Atlantic Group V, a venue and event management company that runs the Atlantic restaurant in Crown and a host of spaces in the Central Pier sheds in Docklands.
The directors of Atlantic Group are Hatem Saleh, Tony Schiavello and Olga Kostovski. Mr Saleh is a joint shareholder along with Schiavello (Vic) Pty, a subsidiary of construction group Schiavello. Mr Saleh denied Atlantic Group was the purchaser.
Mr Zampelis has reportedly closed or sold off six restaurants in the past six months. "We build, we operate and then we sell them off. That's what we do," he said. "Silk Road has been very good to us but we've kept it longer than our other venues. We're selling our bars to focus more on the restaurant side."
In 2010, Mr Zampelis and Crown Casino became embroiled in a bitter legal dispute over the loss of two leases for his restaurants Cafe Greco and Waterfront.
The Victorian Civil and Administrative Tribunal found that Crown management had violated a verbal agreement to allow Mr Zampelis to continue to rent the prime spaces after spending $6million on a refurbishment. Instead, Crown ejected Mr Zampelis and rented the space to Atlantic Group, which opened its flagship restaurant. cvedelago@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
Industry reports in the article say the leasehold for Silk Road likely sold for between $3 million and $3.5 million, with some sources saying the price was believed to be more than $3 million. Nick Zampelis, the owner, denied the sale was unconditional and said he was considering a number of offers.
Nick Zampelis is a restaurateur whose hospitality empire has included more than 60 eateries and bars. He opened Silk Road in 2008 after spending up to $10 million on a luxury refurbishment. The article notes he has recently closed or sold six restaurants and said, “We build, we operate and then we sell them off,” adding he is selling bars to focus more on the restaurant side.
Silk Road is described as an opulent three-level complex with a restaurant, eight bars and two private suites. It became an exclusive playground for high-profile celebrities such as Kim Kardashian, Beyonce, Jay-Z and Jason Statham.
The new buyer is believed to be associated with Atlantic Group V, a venue and event management company that runs the Atlantic restaurant in Crown and operates spaces in the Central Pier sheds in Docklands. The directors of Atlantic Group named in the article are Hatem Saleh, Tony Schiavello and Olga Kostovski. Mr Saleh denied Atlantic Group was the purchaser.
The article says Melbourne’s restaurant and nightclub industry is struggling with tough trading conditions that are pushing operators to the wall, causing a number of high‑profile venues to be sold off or closed. The reported Silk Road deal is presented in the context of that wider industry pressure.
In 2010 Zampelis and Crown Casino were involved in a legal dispute over the loss of two leases for his restaurants, Cafe Greco and Waterfront. The Victorian Civil and Administrative Tribunal found Crown management had violated a verbal agreement to allow Zampelis to continue renting the prime spaces after he spent $6 million on a refurbishment; Crown then rented the space to Atlantic Group, which opened its flagship restaurant.
A leasehold sale means the rights to operate the business at that premises (the lease) changed hands rather than necessarily the freehold land or building. For investors this matters because leasehold transactions determine who controls the operating business and its cash flows at that location—article reporting suggests the Silk Road leasehold likely changed hands for about $3–$3.5 million.
According to the article, the sale highlights two themes investors should note: tough trading conditions in Melbourne’s hospitality sector are forcing operators to sell or close venues, and some operators (like Zampelis) are actively reshaping portfolios—closing or selling bars and focusing on restaurants. These trends can affect valuations, transaction activity and investor risk in hospitality assets.
Call 1300 880 160
Start a chat
Schedule a call
