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 corner 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 Chanel boutique, which was previously leased, is situated in a prime location in the heart of Melbourne's shopping precinct. The building spans over three levels and covers approximately 800 square meters (8,611 square feet). The property was bought from the QIC Global Real Estate, an Australian real estate investment trust.

The sale price of AUD 75 million represents a yield of around 3.3%, which is considered relatively low for commercial property investments. However, it underscores the high demand for prime retail spaces in Melbourne's CBD and the strong financial position of luxury brands like Chanel.

Chanel's decision to purchase the boutique comes as part of the brand's long-term strategy to expand and consolidate its presence in key markets around the world. The company already operates several other stores in Melbourne and is known for its commitment to providing an exceptional shopping experience for its customers.

Melbourne's CBD has been experiencing significant growth and transformation over the past few years, with numerous high-profile developments and investments in infrastructure and amenities. The city's reputation as a popular destination for international tourists and local shoppers alike continues to attract global brands and investors.

The acquisition of the Chanel boutique is expected to set a new benchmark for luxury retail property transactions in Melbourne and further solidify the city's position as a major player in the global luxury market.

In summary, Chanel's AUD 75 million purchase of its long-standing boutique in Melbourne's CBD is a significant investment that underscores the brand's commitment to the Australian market and the growing importance of Melbourne as an international hub for luxury retail. The transaction represents a strong endorsement of the city's potential and is expected to set a new benchmark for luxury property deals in Melbourne.