This article is from the Australian Property Journal archive
MELBOURNE’S archinerds admired Harry Norris-designed art deco building, the Mitchell & Milledge House, has hit the market for the first time since 1970, with expectations in excess of $55 million.
The super prime intergenerational assets comprise two adjoining freehold properties that make up one of the largest privately held retail corners in one of the city’s busiest retail and residential corners, between Melbourne Central Shopping Centre and the Emporium.
The assets occupy a land parcel in excess of 1,800sqm on the corner of Elizabeth and Lonsdale Streets, with 85 metres of retail frontage.
Oliver Hay, Daniel Wolman and Leon Ma from Cushman & Wakefield have been exclusively appointed by a private Vendor to sell the properties via an international expressions of interest campaign, with Tom Byrnes from Charter Keck Cramer acting as transaction adviser.
The Cushman & Wakefield agents recently sold Collins Street’s first freehold building in 2023 for over $30 million to an offshore family office.
“Following Melbourne’s recent influx of offshore investment, population growth, international students and tourism, Elizabeth Street is now viewed in a global context,” said Hay, international director at Cushman & Wakefield.
“International retail brands in other capital cities throughout the Asia Pacific such as Singapore, Kuala Lumpur, Hong Kong, Tokyo, Seoul, Shanghai and Beijing are also competing to secure a presence along this major CBD thoroughfare which is resulting in record rental figures for this prime and highly sought-after location.”
Both properties are fully leased with a strong and diversified income stream with multiple prime retail tenancies including Aussie Disposals, KT Mart, and China Bar, some of which have been trading in the premises for over 30 years.
The Golden Retail Core properties offer significant repositioning upside, with part of the site boasting redevelopment potential for uses including multi-level retail, commercial or boutique hotel, hospitality, and rooftop activation (STCA).
“Interested purchasers will have maximum flexibility to capitalise on Melbourne CBD’s dynamic retail market and explore investment, value add, future repositioning strategies in what is a highly unique offering with enormous future upside,” said Wolman, international director at Cushman & Wakefield.
“With direct access to the Elizabeth Street tram network and Melbourne Central Train Station, the accessibility of Mitchell House and Milledge House is unrivalled. This precinct is now a true 24/7 destination to live, work, and play.”
The offering is set to be presented to local and international high net worth private investors and family offices.
“Seldom, do we come across assets as tightly held as Mitchell House, since its construction, the property has only ever had two owners. Now for the first time in over 53 years the opportunity to become the third owner is yours,” concluded Hay.
