$400m. plus – “where else but Myer” says CBRE

THE once in a century $400 million Myer sales kicked off yesterday – the biggest sale the legendary Melbourne based department store has ever seen, according to selling agent CB Richard Ellis.

According to CBRE selling agent Mark Granter, “everything must go”, but at a price that will attract a field bigger than this year’s Melbourne Cup involving local and overseas property trusts and retailers.

The famous Myer department store is the largest retail offering ever to take place in Australia.

The two city block is some 110,000 sqm of retail space and has been put on the market on leaseback basis by TPG Newbridge and the Myer family, who acquired the business from CML in June last year.

The Bourke Street Emporium will be leased back by Myer on a 20 year lease with four 10 year options. The Lonsdale Street Myer store will be leased back on a short term lease but is like to be redeveloped by the future buyer.

According to Granter, the Bourke Street store will be totally refurbished.

“The Bourke Street store will undergo a two year refurbishment program that will see it become a state-of-the-art retail store,” Granter told Australian Property Journal last night.

Analysts told Australian Property Journal that the refurbishment program will offer the buyer the best long term investment available in Australian retail.

“Best of all the Lonsdale store offers an investor – developer a major redevelopment site in the heart of Melbourne‘s CBD adjacent to Myer. It is the biggest offering in Australian retail history,” the Sydney based analyst added.

Myer executive chairman Bill Wavish said the offering was one of the most prestigious and highly sought after property offerings in Australia.

“Our agents, CB Richard Ellis, are expecting unprecedented interest from both local and international buyers,” Wavish added.

Myer chief executive Bernie Brooks is adamant that the Melbourne store will remain the Myer flagship in Australia.

“This new look Myer Melbourne store will remain our flagship store, keeping the heritage elements intact, yet presenting to our customers a world standard department store refurbishment,” Brooks said.

“All in all, the sale, redevelopment and office relocation process is expected to take some two to three years.”

Granter predicted the first stage of the sale process would be completed by the end of April; a short list struck by the end of June with a final buyer ready to sign by the end of August “at the latest”.

Australian Property Journal