A golden opportunity to secure a true monument of Melbourne comes to market
JLL appointed to sell the penthouse floors in the Eureka Tower – an intergenerational offering with associated ground floor retail subject to an initial 20-year triple net lease to a leading national operator
MELBOURNE, 23 February 2021 – Levels 88 and 89 located in the Eureka Tower - one of Australia’s most recognisable skyscrapers have come to market presenting buyers with the chance to own a Melbourne icon perched at one of the highest points of the urban skyline.
JLL’s Josh Rutman, MingXuan Li, Michael Godfrey and Peter Harper have been exclusively appointed to sell level 88, known as Eureka Skydeck, one of the highest observation decks in the Southern Hemisphere; level 89 occupied as a high-end restaurant & event space ‘Eureka 89’ and ground floor retail situated in the Eureka Tower at 7 Riverside Quay, Southbank via a formal Expressions-Of-Interest campaign on behalf of Journey Beyond.
Journey Beyond will continue to occupy the ground floor retail and both upper levels on an initial 20-year lease with a commencing rental of approximately $3.3 million and fixed annual rental increases, providing cash flow certainty. Journey Beyond is a leading Australian tourism and hospitality operator with numerous iconic brands including The Ghan, Indian Pacific, Outback Spirit Tours and Horizontal Falls Seaplane Adventures.
Mr Rutman said, “This iconic Melbourne investment opportunity presents an X Factor that will attract worldwide attention and will draw comparisons to other prestigious top floor offerings around the world. As one of the highest public observation decks and restaurants in the Southern Hemisphere, Eureka Tower offers highly functional floor plates with floor to ceiling windows taking advantage of unparalleled 360-degree views of Melbourne. The dedicated lift access from ground floor retail to level 88 is an important feature in a post COVID-19 environment. This allows levels 88 & 89 to be an independent, self-contained space which can be used exclusively, providing additional security and privacy.”
Mr Harper said, “The security of a long-term lease will be well received in the market. Journey Beyond is Australia’s pre-eminent, experienced based tourism and hospitality operator and we believe that the long triple net lease and strong tenant covenant will be attractive to a wide range of purchaser groups including passive investors, SMSFs and high net worth individuals.”
Journey Beyond CEO, Mr Chris Tallent said, “Journey Beyond is the leading provider of experiential tourism in Australia, offering unique and immersive journeys and experiences in the most iconic destinations across every State and Territory. The Eureka Skydeck and Eureka 89 are two high performing assets in our portfolio with over 500,000 visitors annually and we have a number of exciting initiatives under development for the Eureka Skydeck, due for completion in Mid-2021.”
Mr Rutman said, “Eureka Tower is a Melbourne icon and a nationally recognised development. There is no doubt that this is one of the most unique opportunities to come to market. The opportunity to own significant ground floor retail and levels 88 & 89 in what is one of the highest developments in the Southern Hemisphere will attract national and international interest.”
Southbank’s largest ever strata sale was transacted by JLL in 2020. Melbourne Square Shopping Centre located at 93-119 Kavanagh Street, is approximately just 450 metres from Eureka Tower. The Woolworths anchored shopping centre was sold for $70 million, on an initial yield of 4.37 percent and was acquired by Primewest.
Expressions-Of-Interest for the part ground floor retail, levels 88 and 89 in the Eureka Tower at 7 Riverside Quay, Southbank close on 31st of March 2021.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.