A 100% interest in a major CBD retail complex – 206 Bourke Street, Melbourne – will be offered for sale by leading property fund manager ISPT, in one of the first key commercial property offerings for 2025.
206 Bourke Street is an 11,845m2 centre, presented over six levels, known for its exceptional dining and entertainment offerings, including Tim Ho Wan, which brings the world-famous Michelin-starred Hong Kong institution to Australia, and key tenants such as JB Hi-Fi, Holmesglen Institute and Victoria Police providing a fully leased net income of circa $6 million.
JLL’s Stuart Taylor, Josh Rutman, and MingXuan Li, in conjunction with Cushman & Wakefield’s Oliver Hay, Daniel Wolman, and Leon Ma have been appointed to bring the asset to market via a public expressions of interest campaign.
“The property provides a massive and highly strategic 3,157m2 landholding, benefiting from enormous frontage to Bourke Street, one of Australia’s premier retail precincts at the front, and one of the largest frontages to Melbourne’s bustling Chinatown at the rear – an incredible dynamic for a retail offering” said Taylor.
Hay commented, “The asset was previously permit approved for the development of a rooftop bar and entertainment facility, while separately having been permitted for a nine-level development incorporating hotel above the existing retail centre, highlighting the incredible optionality of the asset.”
The asset benefits from a central position in one of Australia’s most highly pedestrianised retail precincts and draws from one of the largest and fastest growing catchments in the country with a Main Trade Area population of 3.26 million and projected to grow to 4.6 million (+41%) by 2046.
The centre is set to benefit from the forecast total trade area retail expenditure growth from $71.6 billion in 2024, more than doubling to $162.7 billion by 2046, fueled by Melbourne’s population and tourism growth.
“The asset provides an extraordinary opportunity to secure a strategic CBD asset, underpinned by strong tenancy profile and income security, while offering a range of repositioning and major development opportunities,” Hay added.
“Major CBD retail assets have been extremely tightly held, with very few opportunities presented to the market that provide such attractive investment fundamentals and genuine value-add optionality. We expect the campaign to generate significant interest from a domestic and international buyer pool and a range of capital sources,” Taylor concluded.
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