- Eureka Skydeck, restaurant and ground floor retail sold
- Sale was a "clear vote of confidence for Melbourne’s tourism industry"
- Victorian commercial property has also become "increasingly buoyant"
In February, The Property Tribune reported parts of the Eureka Tower were for sale.
Located at 7 Riverside Quay, Southbank, the ground floor retail, a high-end restaurant, and the Melbourne Skydeck were all up for grabs; the sale was expected to fetch some $45 million.
The observation deck and restaurant, Eureka89, were situated on levels 88 and 89, Journey Beyond, the operator.
Recently, JLL, the company handling the sale, reported that the deal was done at $60 million.
The company said:
“The landmark transaction represents one of the largest single ownership strata titled sales in Melbourne.”
And if you’re wondering what some of the largest are, JLL told The Property Tribune the list included Lot 235-251 Bourke Street, Melbourne Square (93 Kavanagh Street), and 120 Harbour Esplanade.
235-251 Bourke Street went for some $130 million, the strata title belonged to RMIT. JLL told The Property Tribune the 120 Harbour Esplanade strata title went for $81.3 million, and Melbourne Square $70 million.
Levels 88 and 89 were sold to Sydney investment group, RF CorVal, Journey Beyond CEO, Chris Tallent said they were delighted with the deal.
“This new long-term lease arrangement underpins the future growth of this iconic experience in the heart of Melbourne and comes ahead of the launch of some exciting new initiatives under development for the Skydeck, due for completion later this year.”
Chris Tallent, CEO Journey Beyond
Journey Beyond will continue to occupy the ground floor retail and both upper levels on an initial 25-year lease.
Those with a finger on the pulse of retail and tourism may delight, Josh Rutman from JLL said it could be a sign of things to come.
“This transaction is another clear vote of confidence for Melbourne’s tourism industry more broadly.”
Josh Rutman, JLL
Mr Rutman also said, “We were pleased to observe the level of bidding from both traditional tourism and hotel investors as well as private individuals and more established diversified property trusts that saw value in securing the asset.”
Also from JLL, Peter Harper said “The Victorian commercial property market has become increasingly buoyant as demonstrated by recent transaction volumes in the first half of 2021.”
“In Q2 2021 JLL recorded a preliminary total office transactions figure of $985.9 million for Victoria, more than doubling the Q1 2021 figure of $412.5 million in a sign of increased investor confidence and activity in the Victorian market,”
Peter Harper, JLL