Melbourne CBD corner site sells in biggest retail deal since 2024
The nine-level Midtown shop and office building at 246 Bourke Street in the Melbourne CBD has sold for $154 million, marking the city’s largest retail transaction since 2024 and underscoring ongoing investor confidence.
The building, which has 15,233 square metres of retail and office space on a 2787-square-metre site, was acquired by Sydney-based Coombes Property Group in its first major Victorian investment.
The freehold property boasts frontages to Bourke, Swanston and Little Bourke streets, placing it on one of the most heavily trafficked pedestrian intersections in the country, with over four million people passing the corner each year.
The sale campaign, handled by Cushman & Wakefield agents Oliver Hay, Trent Weir, Leon Ma and Daniel Wolman, generated 125 enquiries and 13 offers, demonstrating a strong appetite from private capital for large-scale CBD retail assets.
The building’s major tenants include Telstra, HSBC, Chemist Warehouse, Daiso and W-Cosmetics. A newly secured lease with Japanese retailer MUJI will see the brand replace Telstra in 2027 with a three-level flagship store.
Oliver Hay of Cushman & Wakefield says the campaign reflects growing confidence in Melbourne’s retail recovery and strong demand for tightly held CBD assets.
“We saw strong engagement from high-net-worth investors and private capital groups looking for irreplaceable CBD retail assets with secure income, proven foot traffic and the ability to benefit from Melbourne’s continued retail recovery,” he says.
The transaction also reflects the continued presence of experiential and flagship retailing in Melbourne’s CBD, with global brands targeting the city as consumer activity rebounds.
Trent Weir of Cushman & Wakefield says Midtown’s scale, location and incoming MUJI flagship store helped drive one of the most competitive retail campaigns seen in recent years.
“Midtown is one of Melbourne’s most recognisable CBD retail corners,” he says. “The strength of the result reflects the quality of the location, the diversified income profile and repositioning of the retail offering.”
MA Financial Group assisted Coombes Property Group with the acquisition and will continue to manage the asset. MA Financial head of core real estate Chris Lock says the property presents a strong repositioning opportunity as the CBD continues its regeneration.
“This mandate reflects our long-term conviction in high-quality retail and office assets and further strengthens our position as a leading manager in Australia’s real estate sector,” he adds.
