Amid strong ongoing demand for core CBD retail investment opportunities, a 100% interest in Melbourne’s flagship St Collins Lane CBD shopping centre is being brought to market.  

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney has been exclusively appointed to steer the international sale campaign, which is expected to generate significant interest from both local and offshore investors given the centre’s renowned Collins Street address and significant value-add potential.

At a glance: 

• 100% interest in Melbourne’s flagship St Collins Lane CBD shopping centre
• 9,301sqm centre comprises approximately 45 specialty tenants
• Annual retail expenditure pool of $67.9 billion which is forecast to experience robust growth of 4.3% per annum to 2036

Source: CBRE

“St Collins Lane is situated within Melbourne’s ‘Golden Mile’, which is one of the city’s most trafficked retail destinations and one of the most sought-after shopping precincts in the country,” Mr Rooney said.

“Premium CBD retail assets are always tightly held, rarely traded and continue to be one of Australia’s most pursued retail investment opportunities. We anticipate an extremely competitive domestic and international buyer pool for St Collins Lane, particularly in light of the unique opportunity to reposition the centre and undertake a highly strategic tenant re-mix following the recent departure of Debenhams.”

Opened in mid-2016, the 9,301sqm centre comprises approximately 45 specialty tenants and includes a fast-casual dining precinct and a mix of prominent luxury fashion and lifestyle brands. 

Source: CBRE

Mr Rooney said Debenhams departure from the Australian retail market and its St Collins Lane tenancy provided significant upside potential for an incoming purchaser and the ability to undertake a planned and multi-faceted re-leasing strategy to capitalise on continued and significant demand from ‘new entrant’ retailers and the centre’s high-profile location, linking through to Melbourne’s Bourke Street Mall.

St Collins Lane draws from one of the largest retail catchments in Australia, with an annual retail expenditure pool of $67.9 billion, which is forecast to experience robust growth of 4.3% per annum to 2036.

This is underpinned a captive trade catchment of an affluent surrounding worker market, a bustling tourism market with 35.8 million visitors to Melbourne in the year to June 2019, providing retailers the opportunity to benefit from longer trader hours and diverse customer base. 

Source: CBRE

Mr Rooney said St Collins Lane’s strong underlying retail fundamentals were supported by over 240,000, predominantly white-collar workers within a one kilometre radius of the centre, together with strong retail expenditure per capita of $15,563, 6% above the Australian average.

Simon Rooney joins CBRE

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