Myer Melbourne”, 314-336 Bourke Street
Myer Melbourne, situated at 314-336 Bourke Street. Image – Vicinity Centres.
  • 1/3 of the store acquired for $135.2M
  • WALE of building is 10.5 years
  • MD of ABP said it has repositioning potential

Investor in office, self-storage, and retail property, Abacus Property Group (ASX: ABP) today announced it has acquired a one-third interest in Myer Melbourne.

Having exchanged contracts for 314-336 Bourke Street, Melbourne, the settlement is expected to be at the end of this month.

Abacus purchased its share of the property for $135.2 million, before transaction costs, and reflects circa $10,157 per square metre of gross lettable area (GLA) and a 6% passing yield.

Abacus Property Group (ASX ABP) has bought out 1/3 of Myer at a discount to a previous 1/3 deal struck in 2019. Image – Canva.

Prior to the purchase, ABP had three assets in the retail portfolio including Ashfield Mall in New South Wales, Oasis Shopping Centre on the Gold Coast, and Lutwyche City Shopping Centre also in Queensland.

Then, the portfolio size was $198 million, with a GLA of 33,480 square metres. Occupancy was 93.4% by area.

Portfolio WALE is 5.2 years by income, the new acquisition has a WALE of 10.5 years.

There looks to be a future yet for the site, as Steven Sewell, managing director for ABP, said the property is an “intergenerational opportunity”, and has “longer term repositioning potential”.

“With the potential for a degree of repositioning, this is a great opportunity for the group,”

Steven Sewell, managing director for ABP

Earlier this year, the company acquired the remaining portion of Oasis Centre, a number of storage facilities across Adelaide and Sydney, and in a consortium with Charter Hall Group (ASX: CHC), acquired 241 Adelaide Street, Brisbane.

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