Chris Morris’ Colonial Leisure Group has added to the property portfolio with the freehold of its Lucky Coq in Windsor.
CLG operates 10 venues across Victoria, and around the same number again across several other states.
It has occupied the Lucky Coq, on the corner of Chapel and High Street, since 2009, on a lease set to expire late 2030, with no further options.
The freehold owners were former operators the Caneva family, who have held the title since 1971. The family tested the market for the passive investment in 2018, citing CLG paying $175k (+GST) annual rent.
The property has now changed hands for the first time in over 50 years, with tenant CLG reportedly paying approximately $7 million for the freehold.
This represents a site rate of close to $20k per square metre on the 355sqm block.
Under CLG’s tenure the Lucky has earned a reputation for quality pizzas and pints, and plugs a major focus on entertainment, ranging different offerings on any given night, such as free table tennis, free pool, movie nights, BBQs, live bands and DJs.
Located around seven kilometres south-east of the Melbourne CBD, it is zoned Activity Centre, which brings future development opportunity.
“Chapel Street is part of Melbourne’s fabric and Lucky Coq is one of its most-loved venues,” says CBRE’s Mat George, who managed the transaction with colleague Scott Callow.
“The sale price represents an impressive site rate, but still provides massive upside for the buyer given the potential to further develop the building and scope for rental growth in the future.”
