Long-held retail assets have come to market in Australia’s second biggest city for the first time.
It is the first time Mitchell House and attached neighbour Milledge House in the Melbourne CBD have been offered to the market since they were opened in 1970.
The adjoining properties are one of the largest privately held retail corners in the CBD’s ‘Golden retail core’ between Melbourne Central Shopping Centre and the Emporium.
The assets are on a 1800sq m site at the corner of Elizabeth and Lonsdale streets, and have 85m of retail frontage.
Both are fully leased with a “strong and diversified income stream” with multiple prime retail tenancies, including Aussie Disposals, KT Mart and China Bar, some of which have been trading in the premises for more than 30 years.
Oliver Hay, Daniel Wolman and Leon Ma of Cushman & Wakefield are handling an expressions-of-interest campaign, with Tom Byrnes of Charter Keck Cramer acting as transaction adviser.
Wolman said purchasers would have maximum flexibility to capitalise on Melbourne CBD’s dynamic retail market and explore investment.
“With direct access to the Elizabeth Street tram network and Melbourne Central Train Station, the accessibility of Mitchell House and Milledge House is unrivalled. This precinct is now a true 24/7 destination to live, work, and play,” he said.
“While difficult to put a price on such tightly held real estate, expectations are in excess of $55 million.”
This is the first time they have been offered to the market in 53 years—the assets have had just two owners since they were opened in 1970.
The listings come hot on the heels of Australian property fund manager ISPT putting five assets from its ISPT Core Fund portfolio across Melbourne, Sydney and Western Australia, including the iconic Melbourne GPO, to the market.
