$25m-plus for rare piece of Bourke St Mall

One of the few privately-owned properties in Melbourne’s entire Bourke St Mall is on the market, with a shop fronting the Royal Arcade listed for the first time in more than 30 years.

The shop, at 331 Bourke St, has been owned by the same family for more than three decades and is being sold with price expectations of more than $25 million.

Leased to Bankwest, the property sits on one side of the entrance to the historic Royal Arcade, spans three levels, as well as a basement, and has a net lettable area of 489sqm.

The property is leased to Commonwealth Bank-backed Bankwest.

It is being marketed by Colliers International’s Oliver Hay, Daniel Wolman and Matt Stagg and is to be sold via expressions of interest, which close on May 3.

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Hay says chances to acquire buildings on Bourke St Mall are incredibly rare.

“It’s one of the most tightly-held retail strips in the country, and this is one of the bookends of the Royal Arcade,” he says.

Spanning three floors, the Bourke St Mall property has almost 500sqm of lettable space.

“Only a handful of private owners own Bourke St Mall buildings – the last (privately owned) one to sell was about 10 years ago. This one has been in the one family for over 30 years. It’s a once in a lifetime opportunity.”

Hay says investor interest is expected from both local and overseas investors, with Asian buyers tipped to face stiff competition to get their hands on it.

Bankwest, backed by Commonwealth Bank, has a triple-net lease on the property with 4% fixed annual rent increases.

The Royal Arcade is one of Melbourne’s most historic and iconic retail precincts, having been built in the late 1860s and remaining in almost original condition today after a refurbishment between 2002 and 2004.