Myer sells off iconic Bourke St store

The Myer family has finalised a deal to sell its remaining one-third stake in its own Bourke St store to funds manager TH Real Estate for more than $151 million.

First flagged in May, the 33% stake was Myer’s last remaining interest in the property, which has operated as one of Myer’s flagship department stores since 1914.

The building occupies almost 40,000sqm across nine floors, with more than 61m of street frontage to Bourke St Mall.

JLL’s Simon Rooney negotiated the deal on behalf of Myer Family Investments, and says it comes amid rampant demand for Australia’s major retail assets.

“This sale adds to a series of CBD retail asset transactions that have occurred over the past 18 months,” Rooney says.

Myer has sold its last remaining stake in its Bourke St store in Melbourne.

“It follows the sale of the David Jones building at 77 Market St, Sydney, for $360 million in August 2016, a 75% interest in MidCity Centre, Sydney, for $320 million in May 2016, a 50% interest in World Square, Sydney, for $285 million in December 2015, Rundle Mall and 80 Grenfell St in Adelaide for $400 million in December 2015 and Myer Centre, Adelaide, for $288 million in May 2015.”

Rooney says the Myer deal is unlikely to be the last major CBD retail transaction completed this year.

“We see this high level of CBD retail investment activity continuing over the remainder of 2016 as owners seek to trade out of passive stabilised assets to redeploy funds into other investment and development opportunities.”

Myer is tied to a 21-year lease at the building, which ends in 2031.

TH Real Estate is owned by financial services giant TIAA, and last year signalled its intent to buy up to $1 billion worth of Australian property, with a focus on retail.