Level 1-3 / 256 Collins Street, Melbourne, Victoria
The Butterfly Club - An entertainment development in the CBD
Leasehold 100,000
Business Description
You'll find the former Butterfly Club tucked away at the end of the laneway on Carson Place in the CBD. After twelve years, the venue closed its doors in July - and since then, it has remained virtually untouched. Like a modern-day Marie Celeste, everything has been left exactly as it was: sound and lighting systems, furnishings, unique décor, back-office equipment, and all the infrastructure needed to run a wide range of performances. All of this will be handed over to the new tenant.
The vision is to completely rejuvenate the building and relaunch it as a vibrant new entertainment destination. Current plans include retaining the box office on the second floor, creating a bar, storage, offices, and backstage areas on the third floor, and establishing two purpose-built theatres on the top floor. That said, the space does not need to become "Butterfly Club 2.0." With its generous footprint and prime CBD location, the landlord is open to working with the incoming tenant to shape the venue into whatever best suits their concept.
The venue holds an On Premises liquor licence until 1 am and has a capacity of 322. The proposed lease is a flexible 15-year term (5+5+5) at $2,115 per week including GST. The landlord will provide a rent-free period during the rebuild, plus an additional three months rent-free once construction is complete. With significant investment planned for the renovation, this represents a rare opportunity to develop a standout entertainment space in the heart of the city.
All building permits and plans are already in place - what's needed now is a passionate, creative team to help bring the project to life. The venue is ideal for operators looking to expand their entertainment portfolio, but the landlord is open to a wide range of ideas for the space. An information pack is available, but a walkthrough of the venue will answer most questions and highlight the incredible potential on offer.
Business Summary
Other Features / Notes
A:LEASEHOLD, B:HOTEL/BAR, C:VIC - MelbourneKey Investment Insights
1. Turnkey technical infrastructure intact, including sound and lighting systems, furnishings, unique décor, back-office equipment, and performance-ready infrastructure.
2. Prime CBD laneway location on Carson Place, Melbourne, offering city-centre foot traffic and laneway character.
3. On Premises liquor licence in place until 1 am, supporting late-night operations and hospitality revenue.
4. Permitted capacity of 322, enabling mid-sized events, ticketed performances, and higher-volume bar trade.
5. Proposed flexible 15-year lease structure (5+5+5) at $2,115 per week including GST, providing long-term control and predictable occupancy costs.
6. Landlord incentives include a rent-free period during the rebuild and an additional three months rent-free after construction completion, reducing early cashflow pressure.
7. All building permits and plans already approved, accelerating redevelopment timelines and minimising planning risk.
8. Current redevelopment plan allocates box office on level two, bar, storage, offices and backstage on level three, and two purpose-built theatres on the top floor, offering a multi-level event configuration.
9. Venue has been largely untouched since closure, presenting a preserved existing fitout that can reduce initial refurbishment scope.
10. Landlord openness to alternative concepts and willingness to collaborate with incoming tenant suits operators seeking to expand an entertainment portfolio or adapt the footprint to a bespoke offering.
