“Elite global retail investors that ‘collect’ trophy assets in major cities around the world such as Paris, London, New York, Shanghai, Tokyo, Singapore and Hong Kong are anticipated to submit bids,” mentioned promoting agent Matt Stagg from Colliers International.
“Colliers receives more unsolicited offers to acquire this property than any other in the city,” he mentioned.
Uncertainty from COVID-19 and town’s robust social distancing restrictions are squeezing exercise throughout industrial actual property markets, simply as a lot as Melbourne’s hard-hit housing sector.
Only two different metropolis landmarks have come on the market for the reason that pandemic struck: David Jones’ flagship Bourke Street Mall retailer and the Bank of China building in Queen Street.
But with restrictions slowly easing, a surge of offers is predicted in direction of the tip of the yr as suppressed purchaser demand meets an anticipated flood of latest listings. Louis Vuitton has a 15-year lease on the flagship retailer that is set to run out in 2026, Colliers’ Oliver Hay mentioned.
“The building is well-positioned for rental growth when the market stabilises. Prime tenancies are scarce and command the highest retail rents in the Melbourne CBD,” he mentioned.
Like many different metropolis retailers shuttered by the pandemic, the posh retailer is promoting items by click on and acquire.
The property has a lettable space of 1661 sq. metres. Occupants on the higher ranges embody blue blood legal professionals, company advisory and monetary corporations.
The building, on the nook of Russell Street and subsequent to the Grand Hyatt, will not be the one trophy asset owned by the Kearneys. Six years in the past the household offered one other historic Melbourne icon, Block Arcade, for $80 million.
They additionally personal a clutch of different prime metropolis property, together with 88 Collins Street, Austock House at 342 Collins Street and a vacant four-storey building with a ground-floor store at 88 Elizabeth Street, which market sources recommend they’re additionally contemplating promoting. The household matriarch handed away initially of this yr prompting a reshuffle of property, sources mentioned.
Colliers’ Daniel Wolman mentioned expressions of curiosity for the property shut on the finish of October.
Louis Vuitton operates in 50 nations all over the world and has 460 shops. Owned by mother or father LVMH, it is the most important retail firm on this planet, value $US469 billion ($640 million), in response to Forbes.
Simon Johanson is a enterprise journalist at The Age and The Sydney Morning Herald.