After more than five decades the iconic Mitchell House and Milledge House, two freehold properties on one of Melbourne CBD’s most prominent corners, are being offered to the market.
The adjoining properties represent one of the largest privately held retail corners in Melbourne CBD’s ‘Golden retail core’, located between Melbourne Central Shopping Centre and the Emporium.
Oliver Hay, Daniel Wolman and Leon Ma of Cushman & Wakefield have been exclusively appointed by a private Vendor to sell the properties via an international expressions of interest campaign, with Tom Byrnes of Charter Keck Cramer acting as Transaction Adviser.
Cushman & Wakefield International Director, Oliver Hay, said: “It’s been more than five decades since this privately-held retail trophy asset has been brought to market in what is one of Melbourne CBD’s busiest retail and residential corridors.”
“Following Melbourne’s recent influx of offshore investment, population growth, international students and tourism, Elizabeth Street is now viewed in a global context,” Mr Hay said. “International retail brands in other capital cities throughout the Asia Pacific such as Singapore, Kuala Lumpur, Hong Kong, Tokyo, Seoul, Shanghai and Beijing are also competing to secure a presence along this major CBD thoroughfare which is resulting in record rental figures for this prime and highly sought-after location.
The two trophy assets sit on an expansive land parcel of over 1,800 sqm on the corner of Elizabeth and Lonsdale Streets, with 85 metres of retail frontage making it the only one of its kind within the tightly held retail strip. Both assets 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 over 30 years.
Given the prime location and large underlying landholding, the properties present significant repositioning upside. Part of the site has redevelopment potential for uses including multi-level retail, commercial or boutique hotel, hospitality, and rooftop activation (STCA).
Cushman & Wakefield International Director, Daniel Wolman, said: “Interested purchasers will have maximum flexibility to capitalise on Melbourne CBD’s dynamic retail market and explore investment, value add, future repositioning strategies in what is a highly unique offering with enormous future upside.”
“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.”
The exclusive offering will be presented to local and international high net worth private investors and family offices seeking one of the finest intergenerational investment opportunities to hit the market in over a decade. Whilst difficult to put a price on such tightly held real estate, expectations are in excess of $55m.
“Seldom, do we come across assets as tightly held as Mitchell House, since its construction, the property has only ever had two owners. Now for the first time in over 53 years the opportunity to become the third owner is yours.” Mr Hay commented.
