Bourke House, Corner of Bourke and Russell Streets, MELBOURNE
Raoul Salter, Michael Gross and Jonathon McCormack from Gross Waddell in conjunction with CBRE have sold Bourke House. After attracting a total of 13 bids, the property eventually sold to a new mainland Chinese entrant into the Melbourne market for a price in excess of $33,000,000 or around a 4% yield. With a land area of 373 square metres, this will translate to a CBD record land rate of over $88,000 per square metre – adding further fuel to the current land tax debate.
A striking six (6) level freestanding retail and office building previously owned by the Darrell Lea chocolate family, sits on the corner of Russell Street next door to the new QT Hotel. It was constructed in 1923 and has undergone a number of refurbishments since then, comprising multiple ground floor shops and state-of-the-art upper level office accommodation.
A prime CBD corner boasting a triple street frontage of 55 metres* with additional rear lane access it is perfectly positioned in the heart of Melbourne’s CBD between the city’s Retail Core and Paris End with immediate proximity to Bourke Street Mall, Chinatown, the finest restaurants and international boutiques.
“The property is fully leased to a diverse range of high calibre retail and office tenants with a net passing income of $1,420,000.00 with fixed annual increases (approx. 60% of income derived from retail tenants). The property also provides significant depreciation benefits” according to Raoul Salter.
Michael Gross also commented “The demand for well-located investment assets continues unabated. This is a trophy asset.”