Prime Bourke Street Mall trophy freehold sold for first time since 1955

274-278 Bourke Street sold by Colliers International Melbourne City Sales

A trophy retail asset at 274 – 278 Bourke Street, Melbourne has been sold for the first time in more than 60 years. 

The trophy freehold asset at the heart of Bourke Street Mall was sold following an International Expressions of Interest Campaign conducted by Oliver Hay, Matt Stagg, David Sia and Daniel Wolman of the Colliers International Melbourne City Sales team. 

The property received more than 200 buyer enquiries from investors throughout Australia and overseas. The final sale price and identity of the buyer is subject to confidentiality, however it can be confirmed the result exceeded the “$40million-plus” quoting range. 

The striking, classically styled building at 274 - 278 Bourke Street was constructed in 1859 and has been owned by the same private Melbourne family since 1955. The property is situated in the heart of the Bourke Street Mall, surrounded by major retailers David Jones, Myer, Zara and H&M, and is leased to two national retail tenants, Swarvoski and Windsor Smith.

“The strong result cements the Bourke Street Mall’s reputation as the most exclusive and valuable retail precinct in Australia,” Mr Hay said.  “With only 13 freehold properties in the Bourke Street Mall such properties are highly coveted by specialist retail investors and major tenants.  The Mall is very tightly held with only one other asset trading within the last decade.

“274 – 278 Bourke Street is the most significant retail investment to have traded in the in the Melbourne CBD during 2018.  The more than 200 buyer enquires demonstrates the depth of pent up investor demand seeking premium real estate investments.  

“We are seeing record demand from Australian investors as well as from offshore including Singapore, Malaysia, China, Hong Kong and latest investor hotspot Macau.” 

Mr Stagg said: “Retail rents in the Bourke Street Mall are achieving more than $10,000 to $12,000 per square metre net. This has translated to strong capital growth and driven underlying land values within the Mall to more than $200,000 per square metre. Yields are also very sharp at between 3.00% to 4.00%.”
 

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Matthew Stagg

Director | Melbourne City Sales

Melbourne CBD

Matt Stagg has specialised in the sale of Melbourne Central Business District (CBD) and City Fringe commercial property since 2000. He has an extensive track record selling office and retail investments, development sites and commercial car parks. 

​Matt has an established client base throughout Melbourne and Australia from a variety of sectors including institutional and private investors, family offices, corporates, developers, banks, receivers and government.

He has also cultivated a network of international clients from China and South East Asia. This has directly resulted in several record transactions throughout the CBD and City Fringe to major offshore investors and developers entering the Melbourne market.

​Please contact Matt and the Melbourne City Sales Team should you be considering selling or buying a high quality commercial property in the City of Melbourne.​

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Oliver Hay

National Director | Melbourne City Sales

Melbourne CBD

Oliver is an experienced National Director with a demonstrated history of working in the Real Estate industry. Skilled in negotiation, customer service and real estate transactions, Oliver is a strong operating professional who has received numerous accolades throughout his career. Oliver’s strong client relationships are proof of his success and his drive to achieve the best possible outcome for all clients is unmatched. With a focus in the City of Melbourne, Oliver has transacted some of Melbourne’s largest and most significant deals and continues to play a major role in breaking market records.

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Daniel Wolman

National Director | Melbourne City Sales

Melbourne CBD

Daniel is a National Director for the Melbourne City Sales team, Investment Services and joined Colliers Interational in December 2010 where he instantly began driving both the market and his team to success. 

Daniel and his team consistently prove to be market leaders where he specialises predominately in the City of Melbourne and focuses on real estate, consisting of office and retail investments as well as development sites, student accommodation and car parks. Daniel's knowledge of the industry and strong client relationships allow him to surpass client expectations and deliver outstanding and record breaking results.

Daniel works closely with our international offices, in particular all across Asia, where he leads the Asia Roadshow for Victoria and visits several different major cities every year including Singapore, Shanghai, Macau and Ho Chi Minh, presenting current marketing opportunities to the most active offshore buyers.

As a market leader, Daniel continually accelerates the success of his clients while leading arguably the best team in the market.

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