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Colliers, JLL facilitate landmark Melbourne CBD retail investment

Charter Hall and Abacus have secured a majority interest in Myer Melbourne, an iconic property in one of the world’s most coveted and tightly held retail and commercial precincts.

The sale represents the largest CBD retail transaction in Australia to date in 2021 and the largest Melbourne CBD retail transaction in more than 13 years.

The majority interest (being two-thirds, or 66.66%) in the landmark building at the heart of the Bourke Street Mall was taken to market by Colliers’ Head of Retail Investment Services, Lachlan MacGillivray, in conjunction with Sam Hatcher, Joint Head of Retail Investments at JLL.  

It was offered for sale on behalf of Singapore’s sovereign fund, GIC, and Nuveen Real Estate, one of the world’s largest real estate investment managers. The remaining third has been retained by property manager Vicinity Centres. 

“Myer Melbourne represented one of the best CBD retail offerings in Australian history,” Mr MacGillivray said. “Whilst Myer Melbourne represents a highly successful business and the strongest single performing department store in Australia, it also represents a significant opportunity for positive rental reversion through mixed use conversion in an irreplaceable location.”

The property is one of the Melbourne CBD’s best-known buildings and is located in a prominent position on the Bourke Street Mall, with a 61m frontage offering nine levels of retail accommodation over circa 40,000sqm of GLA. 

“With its unprecedented prime Bourke Street Mall frontage, expansive open floor plates and high ceilings drenched in natural light, Myer Melbourne offers flexible future outcomes for the combined ownership group,” Mr Hatcher said.

The building occupies a 5,680sqm site at 314-336 Bourke Street & 315-321 Little Bourke Street. It has a weighted average lease expiry (WALE) of 10.5 years and is 100% leased to Myer Holdings Limited.

 

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Lachlan MacGillivray

Head of Retail Investment Services

Sydney CBD

Specialising in the sale of major shopping centres, Lachlan has managed the sale of over $12 billion worth of shopping centres, working with a wide range of clients including institutional, international and private investors.

In 2019, Lachlan's team transacted 83% of all retail assets greater than $100 million, equalling a total of $3.58 billion in sales. These included:
The sale of Westfield Marion, SA for $670 million (50% interest);
The sale of Westfield Burwood, NSW for $575 million (50% interest);
The sale of Garden City Booragoon, WA for $575 million (50% interest);

Over the last 24 months, Lachlan has achieved the largest transaction in Australian history with the sale of Indooroopilly Shopping Centre, QLD for $810 million (50% interest). He also secured the largest agency negotiated transaction in Australia at $1.00 billion for the sale of Pacific Werribee and Epping, VIC (50% interest). With an in-depth understanding of shopping centre performance, Lachlan can provide you with expert advice on the sale and acquisition of your retail investments.
• Capital Partnering / Joint Ventures / Portfolio Transactions
• Asset Marketing and campaign strategy, implementation and execution
• Shopping centre acquisition and disposal
• Sale negotiation and transaction
• Strategic asset positioning and repositioning to maximise asset performance
• Buy side investment advisory

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