Russia and Dubai among suitors for iconic Rundle St building

A flood of overseas interest in an iconic building on Rundle St in Adelaide could see the property land in the hands of Russian, Chinese, Singaporean or Dubai developers.

The building at 272 Rundle St, which is home to Italian restaurant Bellezza e Cibo on the ground floor, basement cocktail bar Fumo Blu, and Sugar nightclub on the upper level, is on the market for $5 million, with agents already fielding multiple offers around and above that price.

It’s the development upside that has stirred foreign interest, with Raptis Real Estate’s Chris Raptis saying there is the potential to add a residential component to the property above the commercial spaces, subject to council approval.

Raptis says multiple overseas buyers have already inspected the building.

“I’ve had clients from Singapore, Dubai, Russia and China actually fly to Australia and be wined and dined at the restaurant to view the building,” he says.

“At the moment we’ve had overseas and local interest in the building and we have a few offers on the table that are conditional.”

While the restaurant is new, the nightclub and cocktail bar have operated at the property for more than a decade, with the three tenancies currently returning $252,000 annually.

With much of Rundle St and its famous mall owned by large conglomerates, Raptis says the 377sqm site is one of the last remaining opportunities for investors to obtain a foothold in the precinct.

“It’s one of the last independently-owned buildings on Rundle St,” he says.

“The scope of potentially building apartments on this site has been something that’s been a little bit unique.”

272 Rundle St is for sale by negotiation.