IFM to sell Melbourne GPO in $88m exit
A Sydney developer has entered talks to buy Melbourne’s iconic GPO building for $88 million as the historic retail complex changes hands after two decades.
Melbourne’s historic GPO building is in the sights of a Sydney developer which is in talks to buy it for about $88m as its long-time owner checks out.
The sale of the historic complex, which was H&M’s first Australian flagship store, has been on the cards for more than two years as its super fund manager owner put it on the block in 2023.
Owned by property funds manager ISPT – which has now been subsumed within the larger IFM Investors empire – the complex on the corner of Bourke and Elizabeth streets is one of Melbourne’s best known.
ISPT bought it from property developer and publisher Morry Schwartz and then business partner Adam Garrisson in 2005 for $81m. The pair turned the fire-gutted and heritage-listed former post office into a high-prestige shopping centre.
ISPT in 2023 put the GPO and The Strand retail complex, both in the heart of Melbourne’s CBD, on the block with the hope of collecting more than $180m in total.
But neither property sold at the time.
Now, a private developer is in talks to buy the GPO adding to its holdings nationally.
The private group could be looking to capitalise on the comeback of city retail.
The Victorian capital has also seen a fall off in values although investors are now hunting for bargains, particularly while some offshore players are out of the market.
Melbourne’s GPO is one of Victoria’s most historic public buildings and stands in the heart of Bourke Street Mall. The retail destination blends 1840s architecture and contemporary design.
The H&M, which is secured on a 10-year lease through to March 2034, is surrounded by a mix of boutique eateries in and around the heritage icon, including along Postal Lane.
The GPO complex was originally constructed in 1859 and was used as Melbourne’s General Post Office until 1992. The 3856sq m leasehold site is one of only 14 properties with exclusive frontage to Bourke St Mall.
IFM has been selling off other assets.
Newmark Capital – the property company run by former AFL commissioner and Hawthorn player Chris Langford and business partner Simon T. Morris – is separately in talks to buy a nearby retail property from the IFM. Newmark is raising about $80m to $90m to fund the purchase of the Midtown building at 246 Bourke St which is believed to be trading for more than $160m.
Cushman & Wakefield’s agents Oliver Hay, Daniel Wolman, Leon Ma and Trent Weir are handling the sale but the agents have all declined to comment, as did IFM.
In June, IFM sold 206 Bourke St to a company controlled by Baoyu Li, who heads private developer 3L Alliance, for $80.1m. The 11,845sq m complex houses high-profile tenants such as Michelin-starred restaurant Tim Ho Wan, JB Hi-Fi, Holmesglen Institute and Victoria Police.
That deal was brokered by the Cushman & Wakefield team and JLL’s Melbourne team.
Originally published as IFM to sell Melbourne GPO in $88m exit
