Melbourne’s GPO for sale as part of $600m portfolio
ISPT has listed Melbourne’s GPO as part of a portfolio also with the neighbouring The Strand, a regional Western Australian mall and Sydney office.
The sell-down is expected to reap about $600 million for the manager’s Wholesale Core Fund which will still retain about 80 assets worth c$17 billion.
Proceeds will repay debt and be tipped into the trust’s development pipeline.
Different agents are marketing each asset in the portfolio also including Eastgate Bondi Junction.
Melbourne GPO
The GPO is the priciest of the two Melbourne malls: having just renewed H&M for 10 years, the 75 year leasehold is expected to fetch c$100m according to sources.
On 3859 square metres, at the north east corner of Bourke and Elizabeth streets, the three level c1859 building contains 6678 sqm.
The fund manager bought it in 2005 for $81m from locals Morry Schwartz and David Garrison, who rebuilt it as a shopping centre following a major fire.
Those investors acquired it from Australia Post 23 years ago.
A decade ago, ISPT famously kicked out dozens of retailers for H&M, which opened its first and flagship Australian store there in April, 2014.
The Strand
Abutting the GPO, The Strand, at 250 Elizabeth St, is expected to sell for c$85m.
ISPT bought the freehold in 2006 undertaking a c$20m renovation nearly a decade ago.
Developed in 1976, also connected to the Emporium, it contains 10,116 sqm and 199 car parks (story continues below).
CBRE’s Simon Rooney and James Douglas with Colliers’ Lachlan MacGillivray are marketing it and the GPO.
Sydney assets
Also for sale – for the first time in three decades – is Eastgate Bondi Junction.
On 1.5 hectares, with 15,491 sqm anchored to Coles and Kmart, it is being marketed by Stonebridge’s Justin Dowers, Carl Molony and Philip Gartland with JLL Nick Willis, Sam Hatcher and Kate Low.
In Sydney’s CBD meanwhile, a vacant 25 level, 24,141 sqm B-grade office at 270 Pitt St is being offered by CBRE’s Flint Davidson, James Parry and Michael Andrews with Knight Frank’s Ben Shubert, Paul Roberts and Jonathan Vaughan, as a possible build to rent conversion.
Halls Head Central stake
The final investment for sale is a half interest in Halls Head Central, c75km south of Perth.
Spreading 1.84, with 18,468 sqm, Coles and Kmart are again the anchors.
There are also 46 specialty stores and 1040 car parks.
Mr Rooney and Mr Douglas are the agents.
Vicinity holds the balance and is centre manager.
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