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206 Bourke Street, Melbourne
MELBOURNE, 10 April 2013 – A major mixed use retail, office and entertainment investment in the heart of Melbourne's retail core, 206 Bourke Street, has hit the market for sale.
In what will be one of the largest retail mixed use assets to be offered to the market in 2013, 206 Bourke Street spans a total net lettable area of 11,922sqm generating substantial income of more than $8.124 million per annum from a diverse range of tenants with an average lease expiry of approximately 5.23 years.
Jones Lang LaSalle’s James Kaufman and Simon Rooney are marketing the massive retail and office complex on behalf of joint venture partners Macquarie Group and LAS Group via a public expression of interest campaign.
Located on the edge of the Bourke Street Mall, Melbourne’s quintessential fashion dining entertainment and lifestyle destination, and with direct access to Chinatown, the building occupies a significant freehold site of approximately 3,140sqm.
The former Village Cinema complex was completely redeveloped in 2010 into a state of the art mixed use retail and office complex, and subject to planning approval has potential to be extended again through a boutique hotel or residential building above the rooftop.
Mr Kaufman said “2013 has already seen three strong off-market transactions in the CBD with the sale of major office buildings including 567 Collins Street for $462 million; the 50% interest in the Victoria Police Headquarters at 313 Spencer Street and a 50% stake in 8 Exhibition Street was struck at $160.05 million.“
“All three sales have resulted in yield compression and yields in the range of 6.5% to 6.7% as a result of the lack of quality product with long leases available in the market”.
“206 Bourke Street’s strong cash flow and future potential to add additional building area will appeal to both domestic and international investors”. The building is likely to attract a price in excess of $110 million.
Mr Rooney said “the joint owners have worked hard to completely rebuild and lease the centre which is now stabilised and very appealing to passive investors.”
Mr Kaufman said “The last time a trophy mixed use retail and office investment was available to be purchased was a number of years ago.”
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