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News release

MELBOURNE

Singaporean-based Hiap Hoe acquires its third major Australian property asset for $105 million: 206 Bourke Street, Melbourne

The mixed-use retail and office asset is in a prime CBD position near Melbourne’s fashion and entertainment destination


AUSTRALIA, 6 SEPTEMBER 2013 – Simon Rooney and James Kaufman of Jones Lang LaSalle have sold 206 Bourke Street in the Melbourne CBD for AUD 105 million.

The major mixed use retail and office complex was sold to Hiap Hoe, a Singapore Mainboard-listed integrated property developer. The asset has a diverse mix of international and national tenants including G-Star, Quiksilver, JB Hi-Fi, Regent Club, Shanghai Dynasty Restaurant, Dragon Boat Restaurant and Navitas. The asset is situated on a large site in Melbourne’s retail core.

Australian Head of Retail Investments at Jones Lang LaSalle, Simon Rooney said, “Opportunities to acquire strongly leased, major Melbourne CBD assets have been very limited. The last major CBD retail transaction was the Target Centre on Bourke Street which sold for AUD 88 million in June 2011, and was also sold to a Singaporean investor.”

It also follows LaSalle Investment Management’s acquisition of the Novotel on Collins and Australia on Collins shopping centre in Melbourne for AUD 204 million in 2011 which was brokered by Jones Lang LaSalle.

Mr Rooney said, “The redevelopment of the Myer Emporium in Melbourne that is set to open next year is a major project that will significantly enhance the Bourke Street Mall precinct. The recent announcement that international fashion retailer, H&M has confirmed Bourke Street Mall as their first Australian site and flagship store is another example of the high regard for this central shopping precinct."

Director, Victorian Sales & Investments, James Kaufman said, “There is a strong level of demand from private and institutional offshore investors, particularly for major CBD assets with growth potential or scope for development. However, there is still a lack of prime product being offered to the market. The depreciation in the Australian dollar since March has also made the investment proposition more compelling for some offshore groups.”