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News release


LaSalle to offer highly sought $500m Novotel Melbourne and St Collins Lane retail complex

Prestigious 4.5 star hotel & luxury mixed-use retail precinct in the bustling heart of the Melbourne CBD

JLL, on behalf of LaSalle Investment Management,​ is pleased to offer for sale the Novotel Melbourne on Collins & the new fashion and dining precinct, St Collins Lane, located in the heart of the Melbourne CBD. The transaction will be handled by JLL's Craig Collins & Simon Rooney. The hotel and retail component are offered individually or in-one-line, with pricing expectations up to AUD 500m.

Expression of Interest close Thursday 2 June 2016.

According to JLL's Head of Retail Investments for Australasia, Simon Rooney, "Major CBD shopping centres are a  highly sought after retail asset class at present, given their high sales productivity, ability to provide solid long-term and sustainable income growth and tightly held nature.

"We have seen exceptionally strong demand from institutional investors for prime CBD assets, evident in recent transactions and we expect St Collins Lane will attract high levels of interest from a broad range of domestic and offshore core buyers.

"CBD retail transaction activity reached a record high in 2015 with over AUD 1.2 billion changing hands. Yields in this tightly held sector compressed significantly as investors refocused towards core assets with the highest growth potential and with each being competitively acquired," said Mr Rooney.

The Novotel Melbourne contains 380 guest rooms, extensive conferencing facilities, restaurant and bar. It holds one of the most sought after CBD locations in Melbourne.

"Novotel Melbourne on Collins is one of Melbourne's leading hotels benefiting from proximity to key demand drivers. It has an established trading history and the potential to reposition the asset, taking the opportunity to leverage its phenomenal core fundamentals. After strong focus on Sydney Hotel investment we are seeing several investors move their attention to Melbourne where the city's strong events offering, cultural experience and strong financial hub has positioned it on the world stage," added Mr Collins, CEO JLL Hotels & Hospitality Group Australasia.

Recent major CBD retail transactions include:

  • World Square Shopping Centre & Car Park (50%), Sydney, sold by Brookfield for $285 million to ISPT in December 2015
  • Rundle Place & 80 Grenfell Street, Adelaide, sold by epc.Pacific for $400 million to Blackstone in December 2015
  • 206 Bourke Street, Melbourne, sold by Hiap Hoe for $116.28 million to ISPT in December 2015
  • Myer Centre Adelaide, sold by Novion Retail Partnership for $288 million to YTL Starhill Global REIT in May 2015.

About St Collins Lane:

Located in the heart of Melbourne along the renowned Collins Street, the soon-to-be-completed St Collins Lane will offer over 9,000 sqm of GLA across four floors (plus a mezzanine level). With over 60 stores, the super prime centre has strong pre-commitment by a number of leading international brands including Coach, TAG Heuer, Reiss, Maje, Sandro Paris and The Kooples, along with a host of luxury Australian brands,  as well as popular restaurants including Burger Project and Los Vida – both a Melbourne first. The late-night dining terrace will be a unique addition to Melbourne's celebrated food culture, surrounded by a luxury retail destination.

In addition to being located within one of Melbourne's most established and visited retail precincts, St Collins Lane benefits from direct access from Collins Street and Little Collins Street –and its new re-design includes a pedestrian link connecting these two major streets – as well as Dame Edna Place, and enjoys immediate proximity to public transport, with trams, buses and trains all close by.

This impressive new shopping and dining precinct will be launching on 12 May 2016 and will add a new addition to Melbourne's famous laneway culture.