The oldest freehold building within Melbourne’s most exclusive retail precinct has hit the market for the first time since the 1950s, with sales expectation set at a minimum of $40 million.
The three-storey brick building at 274-278 Bourke Street was originally constructed in 1859.
Colliers International were appointed to manage the sales campaign for the Bourke Street Mall asset, which is currently leased to national retail tenants Swarvoski and Windsor Smith.
High net investor interest is expected due to the tightly-held retail precinct, with only one of 13 freehold Bourke Street Mall properties trading in the last decade.
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“Following Melbourne’s recent influx of offshore investment, population growth, international students and tourism, the Bourke Street Mall is now viewed in a global context,” Colliers’ Oliver Hay said.
“International retail brands with flagship stores in other capital cities throughout the region such as Sydney, Singapore, Kuala Lumpur, Hong Kong, Tokyo, Seoul, Shanghai and Beijing are also competing to secure a presence in the Bourke Street Mall.”
City of Melbourne statistics indicate the Bourke Street Mall attracted more than 20 million visitors and over $1 billion of retail sales for the year ending 2017.
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“The most recent retail leasing deals to the Bourke Street Mall include: Pandora, Foot Locker, Sunglasses Hut and Optus which have been struck at rents of between $9,200 and $12,000 per square metre,” Hay said.
In November last year Cushman & Wakefield revealed that Bourke Street Mall had made the top 20 list for most expensive places around the world to rent a store.