Collective Capital acquires Prominent CBD Asset

Tuesday 11 July 2023

MP Burke Commercial is pleased to announce the sale of 376–378 Bourke Street,


This prominent 5-level freehold building comprising ground floor retail with four upper floors
of office and education accommodation has sold to Collective Capital for an
estimated $14.5million*.

The property is in a prime location within CBD Retail Core, adjacent to Melbourne’s GPO
and Bourke Street Mall and directly opposite the new 39 storey NAB Place Melbourne at 395
Bourke Street and CBUS’ circa $1 billion three building complex at 435 Bourke Street.
The former Coles and Garrard Building is significant as a highly intact example of the Post-
War Modernist style offices and for its long-term association with Victorian optometrists and
spectacle makers, Coles & Garrard, who occupied the building for some 28 years, from 1958
to c1986. The building, designed by architects Meldrum & Noad, reflects the growth and
progress of Melbourne in the 1950s & 1960s.

The ground floor has been home to Priceline Pharmacy for many years whilst the upper
floors are occupied by Queensland Institute and has been education accommodation since
2004. With a short WALE of 1.22 years, the property offers potential for significant rental
reversion in the short to medium term which could be achieved through a full refurbishment
and re-leasing program.

The property comprises a building area of 1,233sqm* reflecting a capital value of

Since redeveloping into education use in 2004, Shesh & Jamuna Ghale have owned the
property for nearly 20 years, and they continue to retain a significant and diverse CBD
property portfolio managed by MP Burke Commercial.

Pat Burke noted “The Melbourne CBD is the heart of Victoria and whilst retailers and
businesses have been resilient over the past few years, momentum is building, and the future
looks bright. The CBD is experiencing greater activity across the board as residents, domestic
& international students, tourists and office workers return to the city to live, study and
undertake business.”

Melbourne along with regional powerhouse Geelong remain the focus of private and
international buyers seeking to invest their capital into A and B grade buildings. “Long term
investors generally understand the short-term market fluctuations such as rising interest rates
and vacancy; therefore, investing in well located and well-presented properties, which offer
growth and the opportunity to value-add remain a very attractive proposition”.

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