Shop on Melbourne's Bourke Street mall expected to fetch $30m
A retail property in Melbourne’s Royal Arcade, fronting Bourke Street mall, has hit the market with expectations of $30 million or more.
It is the first time in more than 30 years the property has been offered to the market. It is owned by the Thomas family, who run the Thomas Jewellers business which includes an outlet next door at Royal Arcade.
The property at 331-339 Bourke Street is occupied by Bankwest, a subsidiary of Commonwealth Bank of Australia.
It has been 13 years at least since the last retail store changed hands in Bourke Street Mall, one of the busiest shopping precincts within the Melbourne CBD.
Colliers International’s Oliver Hay, Daniel Wolman and Matt Stagg have been appointed to handle the property through an expressions-of-interest campaign.
Rare opportunity
“This is a once-in-a-generation opportunity to secure the most renowned Bourke Street Mall address with significant presence and street frontage,” Mr Hay said.
“The shop is in the epicentre of Melbourne CBD’s retail core, in immediate proximity to Myer, David Jones, Zara and H&M, and sits directly next door to Nike’s new flagship store.”
Royal Arcade is among the best known of Melbourne’s popular retail walkways. It is also the nation’s oldest, after opening in 1870. Inside it houses large carvings of the mythic Gog and Magog figures.
Another Melbourne arcade, The Block Arcade, was Myer family sells stake in Myer on Bourke Street three years ago for around $80 million.
The property comprises a basement and three levels above ground, covering 500 square metres. Bankwest is on a three-year lease with three further three-year options.
“Investors are looking for safe, established and reputable tenants,” Mr Wolman said.
“The opportunity to invest in an asset leased to a AAA blue-chip tenant in Australia’s most in-demand retail location is hard to come by.”
