Forza in play for Myer Melbourne building
Forza Capital is understood to be pursuing the landmark Myer store on the Bourke Street Mall – a deal which would reunify the property under single ownership.
The nine level, 40,000 square metre property at 314-336 Bourke Street is held by Abacus Property Group, Vicinity Centres and Charter Hall via the Long WALE REIT.
The price is speculated to be about $450 million.
A sale would end the fragmented ownership structure created through a series of stake trades over the past decade.
Myer Melbourne
On 5682 square metres, linked to the Emporium, Myer is on a lease at 314-336 Bourke St expiring in 2032 with four 10 year options.
It has operated from the property since 1914.
Having a single owner would simplify long-term asset management including redevelopment, a consideration as department stores globally shrink footprints.
This may include reconfiguring upper levels, diversifying the tenant mix or undertaking a longer-term redevelopment (continues below).
Myer recently quit its Brisbane CBD store after 35 years.
High profile property
The Bourke Street Mall complex has passed through several institutional hands since Myer sold it in 2016 after 102 years.
In 2021, Singapore sovereign fund GIC and Nuveen sold a two-thirds (majority) stake to Abacus Property Group and Charter Hall in a deal valued at c$270m.
Vicinity Centres retained its one-third share.
Two years ago, Abacus increased its holding by acquiring a portion of Charter Hall’s interest – a deal which valued the entire asset at $438.3m.
At the moment, Abacus controls 50pc with Vicinity owning a third (33.3pc) and Charter Hall holding the balance (16.7pc).
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