OtherSun 06 May 18

Bourke Street Asset Exceeds Expectations After Two-Hour Auction Marathon

A five-level corner building in Melbourne’s CBD sold this week for $15,205,000 after two hours and more than 600 bids.

The building, located at 220 Bourke Street, was reportedly acquired by the founder of Consolidated Travel Group Spiros Alysandratos, who won out over seven other bidders and exceeded the local private vendor’s reserve by $4,205,000.

The two-hour bidding war included 661 bids as a crowd of 300 watched on until the winning price was reached, representing a yield of 2.99 per cent and a land rate of $75,646 per square metre.

Colliers International’s Oliver Hay, who was part of the Melbourne city sales team responsible for marketing 220 Bourke Street, said the auction was kicked off by offshore bidders, but the majority of the historic two-hour battle was between three local groups.

“The result can be attributed to a combination of low interest rates, strong presence of cash buyers, and local buyers who were willing to fight ferociously to get their hands on an asset that hasn’t hit the market in 80 years.

“220 Bourke Street is surrounded by some of Melbourne’s finest lifestyle amenity, boasts ample public transport options and represented a true once-in- a-lifetime investment opportunity with endless value-add potential,” he said.

The 1,170 square metre building is situated on a 201 square metre site and offered a net lettable area of 1,040 square metres. It has frontages to both Bourke Street and La Trobe Place and direct access to Little Bourke Street and Melbourne’s popular Chinatown precinct.

The building was originally constructed in 1859 and has reportedly been owned by the same family since 1955, when it was purchased by Elbaum Holdings for $402,000.

It also features improvements comprising a five-level freehold building with a Melbourne rooftop terrace, primed for a hospitality rooftop destination in the heart of the CBD.

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