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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%.”
 

Related Experts

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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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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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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