GIC, Nuveen offload Myer Melbourne controlling stake

Myer Melbourne was extended and renovated 10 years ago.

Singapore sovereign fund GIC with Nuveen, a wholly owned subsidiary of the Teachers Insurance and Annuity Association of America, have sold a two thirds stake of Myer’s Bourke Street Mall store.

The store, when it was connected to a Londsale Street property, is where the phrase ‘more front than Myer’ comes from. Image: Google Street View.

The deal, with Abacus Property Group and Charter Hall, is worth c$270.4 million.

On that basis, the nine level, 39,924 square metre property, is valued at $405.6m.

It was priced at $453.9m in 2016 when Nuveen acquired its third from the Myer family (for $151.3m).

Vicinity Centres is the other co-owner; last December, it estimated the worth at $427m, assuming a 5.75 per cent capitalisation rate.

When its former incarnation (CFS Retail), GIC and Myer Family Investments purchased the property in 2007 – just before the Global Financial Crisis – the value was c$605m.

Myer Melbourne

At 314-336 Bourke Street, the c1914 property is arguably Victoria’s highest profile department store.

The Myer family developed it on the site formerly occupied by drapery Wright and Neil, which it acquired three years earlier (story continues below).

Between 1920 and 2009, the complex was connected to a Lonsdale St store – known now as shopping centre Emporium Melbourne.

The Bourke St Mall facility reopened after a refurbishment in 2010.

Myer is on a lease understood to be expiring in 2028 with four 10 year options.

Charter Hall paid David Jones $510m for its flagship Sydney store in December.

GIC and Nuveen were represented by Colliers’ Lachlan MacGillivray and Amy Vanezi with JLL’s Stuart Taylor, Sam Hatcher, Nick Willis and Sam Linden; all agents declined to comment.

Any deal comes 13 months since Newmark Capital paid David Jones $121m for its multi-level menswear store, across the road, with plans to renovate and re-let it.

Last December, that department store also sold Charter Hall its Elizabeth St, Sydney, outlet, for $510m.

More to come.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of