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 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.
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.
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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