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Marathon two-hour auction ends with record sale after 661 bids

Colliers International makes history with sale of high profile 220 Bourke Street

A marathon two-hour battle between eight eager bidders has resulted in the landmark sale of a high profile, corner building on Bourke Street at a record-breaking Colliers International auction.

Oliver Hay,Daniel Wolman, Matt Stagg and David Sia, of Colliers International’s Melbourne City Sales team, sold 220 Bourke Street in the Melbourne CBD for $15,205,000 following 661 bids in front of a 300-strong crowd. 

The sale price exceeded the local private vendor’s reserve by an outstanding $4,205,000 and represented a yield of 2.99% and a land rate of $75,646/sqm.

The five-level, 1,170sqm building is situated on a 201sqm site and offered a net lettable area of 1,040sqm. It has frontages to both Bourke Street and La Trobe Place and direct access to Little Bourke Street and Melbourne’s popular Chinatown precinct. 

Mr Hay said the sale of the prominent building represented a rare freehold investment, development or owner-occupier opportunity in the heart of the Melbourne CBD.

“Opportunities of this kind in the heart of the Melbourne CBD are rare and as such, we witnessed a hot contest that exceeded even our expectations,” Mr Hay said. “The auction was kicked off by some offshore bidders, however the majority of the historic two-hour battle was between three local groups. 

“The incredible result can also be attributed to a combination of low interest rates, strong presence of cash buyers, and local buyers who were willing to fight ferociously to get their hands on an asset that hasn’t hit the market in 80 years.

“220 Bourke Street is surrounded by some of Melbourne’s finest lifestyle amenity, boasts ample public transport options and represented a true once-in-a-lifetime investment opportunity with endless value-add potential.”

The current improvements comprise a five-level freehold building with a spectacular Melbourne rooftop terrace, primed for a hospitality rooftop destination in the heart of the CBD. 

The building’s prime corner location was also second to none. Situated between Swanston Street and Russell Street, the bustling location is exposed to elevated levels of pedestrian traffic as it sits
in the heart of Melbourne’s eclectic mix of commercial and residential developments. 

The world-famous Bourke Street Mall and Melbourne’s GPO is a mere 300m away, while major high-traffic shopping destinations including Myer, David Jones, Zara, H&M and arcades such as
Midtown Plaza, Tivoli Arcade and the neighbouring Target Centre Shopping Mall are all located nearby, as are two of the city’s most prestigious and reputable tertiary education providers,
Monash College and RMIT University’s Bourke Street campus. 

Mr Sia said the property attracted wide-ranging interest throughout the campaign from a diverse group of buyers with its flexibility and variety of value-add opportunities. 

“Not only does this building provide a unique opportunity for a future purchaser to capitalise and transform the rooftop terrace, but it also has the potential for the top two floors to be optimised and converted from private residential use to commercial space,” he said. 

“The existing building also has the potential for additional levels, subject to council approval, given the neighbouring QT Hotel has established an 11-level precedent.”

Related Experts

Daniel Wolman

National Director | Melbourne City Sales

Investment Services

Melbourne CBD

Daniel is Head of Investment Services Victoria with a national role of growing the Australian Investment Services business. Transactionally, Daniel’s specialisation is in the Middle Market assets class ($20-$200mil) throughout the City of Melbourne.

Daniel joined Colliers in 2010 and quickly claimed market share of the CBD. He focuses primarily on commercial investments and value-add opportunities with a laser focus on office, retail and development sites, for which he and his team are market leaders.

Daniel regularly engages with a diverse range of clients from various sectors and consistently strives to surpass client expectation. He manages negotiations on behalf of local, national and international clients and has been involved in billions of dollars’ worth of transactions. 

Since commencing the leadership of his team in 2010, Daniel has managed to guide the Melbourne City Sales team to success year after year, continuing to be a leader in his market and achieve record transactions no other agency has managed to do. In 2021, Daniel has taken responsibility for the entire Victoria Investment Services business.

Throughout these years, Daniel has dedicated his time to many enterprising initiatives including Middle Markets, where Daniel has driven the Victorian and National business to focus on key investments predominantly in the office asset class, and Premium Investments which he has also lead from a National approach, listing and transacting assets underpinned by premium tenants.

Daniel has maintained strong relationships with clients due to his strong and transparent communication, and this is significantly prominent in his extensive track record.

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Oliver Hay

National Director | Melbourne City Sales

Investment Services

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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Matthew Stagg

Director | Melbourne City Sales

Investment Services

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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