A prime Melbourne CBD retail asset has changed hands for $80.1 million, reflecting sustained investor confidence in the city’s retail market. The freehold property at 206 Bourke Street was acquired by a private investor.
The transaction was brokered by JLL’s Stuart Taylor, Josh Rutman and MingXuan Li, alongside Cushman & Wakefield’s Oliver Hay, Daniel Wolman and Leon Ma, on behalf of property fund manager ISPT.
Strategically located between Bourke Street Mall and Chinatown, the 11,845m2 complex spans six levels on a substantial 3,157 m2 site. The property offers dual street frontages and benefits from exposure to one of Australia’s largest and fastest-growing urban catchments. Key tenants include the Michelin-starred Tim Ho Wan, JB Hi-Fi, Holmesglen Institute and Victoria Police.
Stuart Taylor said the retail complex attracted strong domestic and international interest. “The sales campaign attracted 14 bidders highlighting the strong demand for high-quality CBD retail assets, he said.
“Major CBD retail assets with income security and future development potential remain tightly held. 206 Bourke Street presents exceptional fundamentals and strategic positioning, making it a rare offering that resonated strongly with a wide capital base.”
Private capital was particularly active, comprising five of the six top bidders, while Asian capital made up three of the four most compelling offers. In total, the campaign uncovered over $900 million in underbidder capital, backed by a mix of private, syndicator, and institutional sources.
Oliver Hay said the site’s development credentials contributed to the high level of interest.
“The site holds prior development approval for a rooftop bar and entertainment venue, along with a nine-storey hotel above the existing retail. That scope for development, combined with its core CBD location, makes it a future-facing investment with multiple pathways to value creation,” he said.
“The process was one of the most competitive we have seen in recent years, demonstrating renewed confidence in the Melbourne CBD investment market.”
Leon Ma commented, “the asset resonated with Asian capital given its large land holding and strategic position with major frontage to Chinatown, with this buyer cohort looking through current state taxes and seeing long term value in Melbourne real estate.”
Add comment