This article is from the Australian Property Journal archive
INDUSTRY Superannuation Property Trust, the dark horse vying for Myer's property empire, has shored up its position in heart of Melbourne's CBD retail centre by snapping up the Midtown Plaza, on the corner of Swanston and Bourke Street Mall.
Property sources told Australian Property Journal late yesterday that ISPT has bought Midtown Plaza in an off market transaction from a private company, Esteem Investment Group headed by Elie Lederman.
ISPT has paid an undisclosed amount for the asset but it is believed to be in excess of $60 million.
Property sources said the Midtown Plaza (formerly Centre Plaza) will give ISPT a major slice of Melbourne’s CBD busiest retail strip.
Midtown Plaza is located on the corner of Swanston and Bourke Streets – which is within a minute distance from ISPT’s the Strand Arcade and Melbourne GPO building on the corner of Elizabeth and Bourke Streets.
The Myer Bourke Street Mall is wedged in the centre of the three assets.
“GPT might be firm favourite to buy Myer’s assets but with ISPT buying Midtown, I think GPT has a fight on its hands,” the source added. “If ISPT takes Myer’s Bourke Street Mall it will complete the puzzle. ISPT will recreate a monopoly that Westfield has in the Sydney CBD with Westfield Centre Point and Sydney Central Plaza.”
Located at 246 Bourke Street, Midtown Plaza was purpose-built in the 1930 as a Foy and Gibson department store.
It is a nine storey mixed commercial and retail complex including 8,500 sqm of office space over seven levels built above three levels of retail including a basement and first floor showroom and a ground floor food hall.
Telstra currently occupies two levels of retail space totalling 1,920 sqm, following the exit of Nike. In addition to Telstra, HSBC, Citibank and Dick Smith are also tenants.
Coles is the major office tenant taking space on levels 2, 3, 4 and 5. Other tenants include Carrick Institute of Education; The Suzan Johnston Training Organization; Consolidated Travel Pty Ltd.
The property was last on the market in 2000, through an expressions of interest campaign – but it did not sell.
In 1997, Esteem bought a stake in the plaza from Melbourne millionaire Nathan Werdiger. Later in 2002, Esteem bought a further two third share for $30 million.
Australian Property Journal
