The home of a renowned Melbourne restaurant has come to market with expectations of more than $5 million, as CBD freehold properties become increasingly difficult to secure for less than $10 million.

Modern Italian restaurant Bottega, at 72-74 Bourke Street, has been operating out of a prize two-level retail building between Grossi Florentino and Pellegrini’s Espresso Bar since 2002.

Savills Australia’s Clinton Baxter, Nick Peden and Benson Zhou have been appointed to manage the expressions-of-interest campaign, saying they expected interest from local, interstate and international investors.

“The Melbourne CBD has become one of the most tightly held markets in Australia, and opportunities to secure prime freehold properties below $10 million are increasingly rare,” Mr Baxter said.

“Run by famous restaurateur Denis Lucey, who also owns Bistrot D’Orsay on Collins Street, Bottega has become something of an institution among the city’s foodies so we expect strident competition among prospective buyers.”

Mr Baxter said the tenant had recently extended its lease to ensure long-term tenure at the property, and was paying a modest rental of $211,940 per annum.

“This rate is well below current market levels, leaving ample room for growth in the years to come,” he said.

The property is close to the recently announced 235-room Le Meridien hotel development, which is to be constructed on the former Metro Nightclub site at 30 Bourke Street.

“The east end of the CBD has always been the preferred location for investors, tourists and office workers,” Mr Baxter said.

“With major projects, such as the new Le Meridien hotel, Setia’s $800 million Sapphire mixed-use project, which includes a 500-room Shangri-La hotel, and QIC’s nearby 80 Collins Street redevelopment all set to add to the immediate catchment, the future will be very positive for this exclusive part of the CBD.”

“The City of Melbourne has the fastest-growing population of any municipality in Australia as a result of the unprecedented apartment building boom so the outlook for all retail properties in the Melbourne CBD is remarkably positive,” Mr Peden concurred.

Expressions of interest close on Wednesday, May 9 at 2pm.