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