Novotel Melbourne and Collins St retail centre expected to sell for $500 million

Novotel Melbourne and Collins St retail centre expected to sell for $500 million
Novotel Melbourne and Collins St retail centre expected to sell for $500 million

The Novotel Melbourne on Collins and the new fashion and dining precinct, St Collins Lane, is up for sale with expectations of $500 million through an expressions of interest campaign.

The hotel and retail component are offered individually or in-one-line.

The Novotel Melbourne comprises 380 guest rooms, conferencing facilities, restaurant and bar, while the soon-to-be-completed St Collins Lane on the famous Collins Street will offer more than 9,000 sqm of GLA across four floors (plus a mezzanine level).

With over 60 stores, the centre has pre-commitment by a number of international brands including Coach, TAG Heuer, Reiss, Maje, Sandro Paris and The Kooples, along with a host of luxury Australian brands, as well as popular restaurants including Burger Project and Los Vida. The shopping and dining precinct will be launched on May 12.

The transaction will be handled by JLL’s Craig Collins and Simon Rooney. 

“Novotel Melbourne on Collins is one of Melbourne’s leading hotels benefiting from proximity to key demand drivers," said Collins, CEO JLL Hotels & Hospitality Group Australasia.

"After strong focus on Sydney hotel investment we are seeing several investors move their attention to Melbourne where the city’s strong events offering, cultural experience and strong financial hub has positioned it on the world stage.” 

According to JLL’s head of Retail Investments for Australasia, Simon Rooney, “Major CBD shopping centres are a  highly sought after retail asset class at present, given their high sales productivity, ability to provide solid long-term and sustainable income growth and tightly held nature. 

He said CBD retail transactions touched a record high of $1.2 billion in 2015. 

The EOI campaign closes June 2. 

Recent major CBD retail transactions include:

  • World Square Shopping Centre & Car Park (50%), Sydney, sold by Brookfield for $285 million to ISPT in December 2015
  • Rundle Place & 80 Grenfell Street, Adelaide, sold by epc.Pacific for $400 million to Blackstone in December 2015
  • 206 Bourke Street, Melbourne, sold by Hiap Hoe for $116.28 million to ISPT in December 2015
  • Myer Centre Adelaide, sold by Novion Retail Partnership for $288 million to YTL Starhill Global REIT in May 2015.
Tags: 
Melbourne Hotel Sale Retail Sale

Comments

Be the first one to comment on this article
What would you like to say about this project?