This article is from the Australian Property Journal archive
A MAJOR East End and Chinatown site in Melbourne’s CBD is up for grabs for the first time in almost 35 years, with expectations at around $50 million.
The 1,909sqm property at 146-160 Bourke Street and 139 Little Bourke Street covers five titles with 215sqm of quadruple street and laneway frontage across the three interconnected buildings.
The site provides a combined 5,062sqm of leasable floor area, with the buildings currently on secure leases to six tenants that generate a combined income of more than $1.6 million per annum.
Mark Ryder, Paul Sberna and David Gibellini from Ryder Commercial are managing the sale via an international expressions of interest campaign, on behalf of Hong Kong-based owners Choi Wing On & Co.
“All the fundamentals that buyers are typically seeking are uniquely embedded in this asset.
These attributes include secure leases to multiple long-standing tenants with Landlord favoured redevelopment clauses embedded in all the leases. Buyers have the benefit of secure income and the opportunity to redevelop or occupy whenever they are ready, without having to wait for leases and lease options to expire,” said Mark Ryder, managing director at Ryder Commercial.
“Rarely does such a large landholding with a major Bourke Street frontage become available in the premier eastern end of the CBD, in the heart of Chinatown with other significant street & lane frontages creating an island site.”
The property last traded in 1989, with Choi Wing On & Co spending $16.1 million on the site.
The 1934-built modern style building now occupied by Paddy Pallin, was designed by Architect Arther W Purnell who also designed the Olympic stand at the MCG.
While the 1,800sqm 2 Coverlid Place is leased to Ballers Clubhouse, with 139 Little Bourke Street occupied by Ginza Teppanyaki restaurant.
“This property has been held by our valued family client since early 1990 and has never been offered to the market since, it is a significant CBD landholding that we know will have wide appeal to investors, who can look to hold the asset & re-set longer Leases, also developers who can look to exploit its scale & position to create a unique landmark project for the East End and Chinatown precinct (STCA),” added Ryder.
“We also know there has been a complete lack of large-scale owner occupier opportunities in the CBD and particularly in the East End and the properties provides a unique opportunity to that sector of the market as well.”
The listing sits within close range of Parliament House, Parliament Station and several prestigious hotels, with plenty of public transport at its doorstep.
The international expressions of interest campaign for 146- 160 Bourke Street and 139 Little Bourke Street is scheduled to close on 14 November 2024.
