IFM Investors divests Midtown Melbourne for $154m to Coombes in CBD retail mega deal

IFM Investors has unconditionally exchanged a contract for the sale of Midtown Melbourne at 246 Bourke Street for $154 million in what marks the largest Melbourne CBD retail transaction since 2024, reinforcing renewed confidence in prime city retail assets. 

The landmark mixed-use asset occupies the prominent corner of Bourke and Swanston Streets on a site of 2,787 sqm, directly at the gateway to Bourke Street Mall, and comprises 15,233 sqm of retail and office space across a nine-level freehold building.  The asset boasts frontages to all of Bourke Street, Swanston Street and Little Bourke Street.  

The property was acquired by Sydney-based Coombes Property Group as its first major investment in Victoria. The transaction followed a competitive campaign that generated 125 enquiries and 13 offers, highlighting strong demand for institutional-grade CBD retail investments. 

This acquisition caps off a busy six months for Coombes Property Group, having been appointed to the Hunter Street Station precinct for Sydney Metro West alongside development and delivery partners Mirvac and Lendlease in December 2025.  

MA Financial assisted Coombes Property Group during the acquisition and is retained on an ongoing basis to provide asset and property management services for the asset. 

Chris Lock, Head of Core Real Estate at MA Financial said Midtown presented a compelling opportunity to reposition the office spaces and capitalise on the ongoing recovery and regeneration of the Melbourne CBD and Bourke Street Mall precinct. 
“Midtown Melbourne aligns with the investment and asset management capabilities of our core real estate platform. MA Financial actively manages approximately $4.5 billion in retail and office assets, bringing scale and expertise to this asset.  

“This mandate reflects our long-term conviction in high-quality retail and office assets and further strengthens our position as a leading manager in Australia’s real estate sector.”  
Sold through Oliver Hay, Trent Weir, Leon Ma and Daniel Wolman of Cushman & Wakefield, the transaction reflects a building rate of more than $10,000 per sqm underpinned by major tenants including Telstra, HSBC, Chemist Warehouse, Daiso and W-Cosmetics. A newly secured lease to international retailer MUJI, will replace Telstra in 2027, establishing a three-level flagship Melbourne store within the asset. 

Oliver Hay of Cushman & Wakefield said the campaign attracted strong interest from domestic private capital groups seeking scale, income security and long-term positioning within Melbourne’s retail core. 
“We saw strong engagement from high-net-worth investors and private capital groups looking for irreplaceable CBD retail assets with secure income, proven foot traffic and the ability to benefit from Melbourne’s continued retail recovery,” he said. 
Located on one of Australia’s most heavily pedestrianised intersections, Midtown benefits from more than four million pedestrians passing the corner annually and sits among Australia’s highest retail rental precincts outside Pitt Street Mall. 

Trent Weir of Cushman & Wakefield said the asset’s combination of scale, location and securing of MUJI made it one of the most tightly contested retail campaigns in recent years. 
“Midtown is one of Melbourne’s most recognisable CBD retail corners. The strength of the result reflects the quality of the location, the diversified income profile and repositioning of the retail offering,” he said.