Richmond brothel lures investor interest with high-yield potential
A fully leased adult entertainment venue dubbed Candy Club in Richmond, Melbourne, has hit the market with an existing five-year lease that will provide immediate income in an industry where barriers to entry remain high.
In addition, the asset benefits from a secondary income stream via a long-term billboard lease, generating $20,723.29 a year plus GST (as at November 1, 2025), with fixed annual increases.
Set on one of the busiest city-fringe corridors on Victoria Street, the property spans about 418 square metres, with a main building of 310 square metres and a separate two-storey building.
The central location benefits from strong foot traffic and proximity to the CBD, and the precinct continues to evolve with new residential and hospitality offerings.
While adult entertainment assets are not commonly traded, they do surface periodically, typically attracting a niche but motivated buyer pool.
“It’s not something that comes up all the time,” says Grant Sutherland of Sutherland Farrelly. “There was another one that sold in Collingwood last year, and one in Springvale.”
Unlike many specialised assets, venues of this nature are rarely repositioned following a sale, with most purchasers opting to retain the existing business model.
“They generally continue running as they are,” Sutherland says. “This one’s leased for five years, and the others were also leased.”
That continuity is a key drawcard for investors, particularly those seeking higher-yielding assets with established operations already in place. In tightly regulated sectors such as adult entertainment, the ability to acquire a compliant, income-producing property can be significantly more attractive than attempting to navigate the approvals process from scratch.
Sutherland says buyer interest typically comes from a mix of experienced operators and yield-focused investors.
“They can be people within the industry, but there are also buyers who are simply looking for a high-yield investment,” he says.
Beyond its current use, the property is underpinned by Richmond’s enduring appeal as one of Melbourne’s most sought-after city-fringe suburbs.
Victoria Street has long been known for its retail, food, and drink scene, and in recent years has continued to gain popularity, driven by surrounding residential development and growing infrastructure.
This is a mortgagee sale by expressions of interest closing at 3pm on Monday, March 30.
