Chanel lands trophy store in $75m luxury deal

Chanel, the renowned French luxury fashion brand, has recently made headlines with its significant investment in Melbourne's Central Business District (CBD) by purchasing its 10-year-old boutique located at the intersection of Russell Street and Flinders Lane for an impressive sum of AUD 75 million (approximately USD 54 million or EUR 48 million). This transaction marks a strong endorsement of Melbourne's growing status as an international hub for luxury retail.

The boutique, which spans over three levels and covers approximately 800 square meters (8,611 square feet), was first opened by Chanel in 2011. The building housing this flagship store was specifically designed for the brand by the renowned architect Thomas Heatherwick, who is known for his innovative and contemporary designs.

The sale was confirmed by Chanel's local property agent, JLL, who stated that the transaction represented one of the largest single retail property deals ever recorded in Melbourne's history. The sale price equates to around AUD 93,000 per square meter (approximately USD 62,832 per square foot or EUR 56,983 per square meter).

Melbourne's CBD has been experiencing a surge in demand for luxury retail space due to its strategic location and growing popularity as a tourist destination. The city attracts millions of visitors each year, making it an attractive market for luxury brands looking to expand their presence in the Asia-Pacific region.

Chanel's decision to invest such a substantial amount in this property is a clear indication that the brand values the potential for growth and success in Melbourne's luxury market. The acquisition also underscores Chanel's commitment to maintaining a strong presence in the city and providing an exceptional shopping experience for its customers.

The sale is expected to set a new benchmark for luxury retail property prices in Melbourne and further solidify the city's position as a major player in the global luxury market. The transaction is set to be completed by the end of 2023, with Chanel continuing to operate from the location during this time.

In summary, Chanel's AUD 75 million purchase of its flagship boutique in Melbourne's CBD is a significant investment that underscores the brand's faith in the city's potential for growth and success in the luxury retail sector. The transaction represents one of the largest single retail property deals ever recorded in Melbourne and sets a new benchmark for luxury retail property prices in the city.