St Kilda pizza icon Topolino’s site eyed by Sydney hospitality giants

The owners of pizza joing Topolino’s are selling 83-87 Fitzroy St, St Kilda, in a listing that has the eye of NSW hospitality groups.

The home of much loved St Kilda pizza joint Topolino’s could be in the hands of Sydney-siders before Christmas, with NSW hospitality groups eyeing the eatery and its neighbours.

The Forte family have run the prominent pizza shop from its 87 Fitzroy St home for more than 50 years, and owned the building as well as its neighbours for decades, but listed the property for sale earlier in October with the offer of vacant possession.

That would see the end of the popular pizzeria, which is currently still serving.

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Matthew Forte said the property had been his family’s passion.

“We’re proud of what it has become, and excited to see the next chapter unfold,” Mr Forte said.

The 83-87 Fitzroy St amalgamation was listed about 11 days ago as a possible development hotspot given its large size, but has already attracted significant demand from hospitality groups lured in by the 24-hour liquor license.

Stonebridge Property Group commercial property agent Nic Hage said there had been fairly strong inquiry from both developers and those looking to set up shop themselves.

“And it’s not just local hospitality groups, we do have NSW based-hospitality groups looking at it,” Mr Hage said.

“I believe there’s only one other venue in St Kilda with a 24 hour liquor license.”

The agent declined to comment on which interstate groups had shown interest.

The series of shops in St Kilda account for one of the biggest development options left in the popular precinct.

Inside the venues that have been put up for sale.

But there’s a solid list of big operators who already have connections to Melbourne, including Merivale Group boss Justin Hemmes — who has run into difficulties with his plans for an entertainment precinct to replace the Parkade car park complex he bought from Melbourne City Council for $55m late last year.

The Melbourne Club has moved to block his plans via their right over a lease on the property, which lasts until 2037.

Whether he would look for another site or not is unclear, but the Parkade was his third acquisition in Melbourne following the purchase of CBD addresses Tomasetti House on Flinders Lane, which is slated for redevelopment, and the Kantay House at Meyers Place.

Merivale boss Justin Hemmes has been actively buying Melbourne sites.. Picture: Mick Bruzzese.

Other major Sydney-based hospo groups include the Oscars Group, run by the Gravanis family, which has a number of Victorian venues to its name already, as well as celebrity chef Neil Perry-linked Hunter St Hospitality, which runs the Rockpool Bar & Grill as well as Spice Temple at Crown’s Southbank complex.

While the Topalino’s site is expansive at 1770sq m in a Major Activity Centre that has agents spruiking the possibility of venues at ground levels and residences higher up, it’s also likely to be more affordable than other major Melbourne venues currently up for grabs including the Garden State Hotel, which is tipped for a $40m sale before the end of the year.

Mr Hage said that fully leased, the properties on Fitzroy St could bring in about $700,000 a year.

At a 5 per cent yield would translate to a $14m price. Mr Hage said the yield would be sharper than this, but would not suggest a price expectation.

Recent transactions could also suggest square metre rates north of $13,000, taking the potential price past $20m.

Stonebridge’s Julian White said there were already high-end apartment complexes nearby, and with rising demand for homes from young professionals, the site had the fundamentals to “underpin future demand from both downsizers and buyers, paving the way for multiple development outcomes”.

The Parkade complex in Melbourne’s CBD has hosted its share of special events and entertainments, but a Merivale-backed evolution appears to be in for a delay.

It’s also unclear how increasingly developer-friendly policies from the Victorian government could influence the market.

The state this week announced it would enforce timelines on approvals for more modest apartment and townhouse developments, following a series of pledges made earlier in the year to drive major development hubs in key locations around tram and train stops across Melbourne.

Mr Hage said the firm as yet didn’t have a firm lead on how this week’s announcements would impact demand for major sites like 83-87 Fitzroy St, however he noted that “everything helps”.

He added that they expected a sale before the end of the year — despite a November 20 end to its current expressions of interest.

Urban Development Institute of Australia Victorian chief executive Linda Allison said while more positive language from the government was creating a “cautious optimism”, the reality is that “cost is cost” and few apartment projects were stacking up at the moment for reasons beyond planning outcomes.

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