Prime location, secure income and development upside drives landmark sale of 206 Bourke Street
A prominent retail property in the heart of Melbourne has sold for $80.1 million.
Cushman & Wakefield’s Oliver Hay, Daniel Wolman and Leon Ma, together with JLL’s Stuart Taylor, Josh Rutman and MingXuan Li, negotiated the sale on behalf of leading property fund manager ISPT.
The freehold asset at 206 Bourke Street was acquired by a private investor. Positioned between Bourke Street Mall and Chinatown, the site benefits from dual high-exposure frontages and access to one of Australia's largest and fastest-growing catchments.
The 11,845sqm complex occupies a substantial 3,157sqm landholding across six levels in the heart of Melbourne’s retail core and includes high-profile tenants such as Michelin-starred restaurant Tim Ho Wan, JB Hi-Fi, Holmesglen Institute, and Victoria Police.
Mr Taylor said the retail complex attracted strong domestic and international interest. “The sales campaign attracted 14 bidders highlighting the strong demand for high-quality CBD retail assets, he said.
“Major CBD retail assets with income security and future development potential remain tightly held. 206 Bourke Street presents exceptional fundamentals and strategic positioning, making it a rare offering that resonated strongly with a wide capital base.”
Private capital was particularly active, comprising five of the six top bidders, while Asian capital made up three of the four most compelling offers. In total, the campaign uncovered over $900 million in underbidder capital, backed by a mix of private, syndicator, and institutional sources.
Mr Hay said the site’s development credentials contributed to the high level of interest.
“The site holds prior development approval for a rooftop bar and entertainment venue, along with a nine-storey hotel above the existing retail. That scope for development, combined with its core CBD location, makes it a future-facing investment with multiple pathways to value creation,” he said.
“The process was one of the most competitive we have seen in recent years, demonstrating renewed confidence in the Melbourne CBD investment market.”
Mr Ma commented “the asset resonated with Asian capital given its large land holding and strategic position with major frontage to Chinatown, with this buyer cohort looking through current state taxes and seeing long term value in Melbourne real estate.”
