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The transaction of two historic freehold properties is being touted as Melbourne central business district’s largest commercial transaction for the past year.
Cushman & Wakefield has revealed the iconic Mitchell House and Milledge House were sold for $56,000,000 with a 4.17 per cent yield.
The properties were previously held by a longstanding private Melbourne family for over 50 years, further adding to the significance of the deal.
The two properties are located within Melbourne CBD’s “golden retail core”, between Melbourne Central Shopping Centre and Emporium, and constitute one of the largest privately held retail corners of the city.
Cushman & Wakefield international director, Oliver Hay, said: “In a period where the CBD market has been starved of sizeable transactions, this is a strong indicator that prime CBD diverse assets are very resilient and appealing not only interstate investors but offshore private capital.”
Mr Hay was joined by team members Daniel Wolman and Leon Ma in facilitating the deal, and assisted by transaction advisers Tom Byrnes and Scott Keck of Charter Keck Cramer to create a “highly strategic and thought-out campaign” which “generated over 10 offers for a mix of buyer profiles and over 39 inspections”.
According to Mr Ma, who is the director and head of Asia Capital Services at Cushman & Wakefield, the capital bidding profile included 43 per cent of its capital from offshore offers, originating from Macau, China and Singapore.
Despite the subdued deal activity currently being seen in Melbourne’s real estate market, Cushman & Wakefield Melbco Middle Markets have expressed confidence in sustained interest from high-net-worth and private investors.
They anticipate a rebound in 2024 as investors aim to capitalise on CBD assets, coupled with the expected return of office workers and immigrants pursuing higher-level studies in Australia.
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