Australias best brothel sells for 53 million to developer

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THE premises of a Sydney escort and massage service, which bills itself as “Australia’s best brothel”, has sold for $5.3m to a developer.

Michelles brothel, also known as RPM Sydney which stands for real promiscuous massage, operates from the top floor of 133-135 Bayswater Road, in the waterfront Sydney suburb of Rushcutters Bay.

The building includes a separate nail salon and hairdresser on the ground floor.

Michelles promotes itself as the headquarters of full body massage and an escort provider of call girls for party cruises, business functions, bucks nights, you name it.

The brothel, which has been operating for 30 years, offers a half-hour service for $180 and full hour for $260, plus a top shelf bodyslide masseuse or a nude massage at your hotel.

Michelles escorts hold regular Friday night parties in the brothel and has its own Instagram account.

Real estate agent CBRE said the buildings three businesses brought in an annual rent of $320,000.

But the brothel tenancy was valuable because it was increasingly rare and always accrued a high rent.

Brothel licenses are very hard to come across, it is almost impossible to get council approval for them anymore, CBREs Gemma Isgro told the Wentworth Courier.

Brothel tenants will always pay very good rent, a very rare asset to hold because you get such a high return and they will always be in demand because of those licenses.

They have to be a certain distance from schools, have rear lane access and the license stays with the property, not the owner.

The building could be completely redeveloped by a property developer.

Nicholas Heaton of CBRE said a mix of buyers had been interested in the property, before a local Sydney developer paid $5.3m for the streetfront property.

There is split interest among investors and also developers because all the leases there have 12-month demolition clause and it has favourable planning controls for development and a 27m height limit across that site, Mr Heaton said.

It yields about 15 units on that site and its pretty rare to have a development site with those planning controls.