Property fund manager ISPT is selling its GPO and The Strand Melbourne retail buildings.

ISPT has tapped CBRE’s Simon Rooney and James Douglas and Colliers’ Lachlan MacGillivray to sell the assets. 

The GPO houses Australia’s largest H&M flagship store, which has a 10-year lease agreement until March 2034, while The Strand Melbourne is home to fashion and retail tenants including Cos, Acne Studios, Asics, Onitsuka Tiger, Dinosaur Designs, Midas, and Franck Provost.

“The two assets are expected to be highly sought after and following the robust sale of Louis Vuitton in 2020 at a low yield of 2.4 per cent and sale rate of $40,915, we expect the pent-up demand for assets of this nature to garner a strong reception from the market,” said MacGillivray.

“Iconic assets in the Melbourne CBD seldom come to market, especially located in one of the nation’s most highly regarded retail precincts.”

The last Victorian CBD deal was struck over two years ago.

“Premium, flagship CBD retail assets are always tightly held, rarely traded, and continue to be one of Australia’s most pursued retail investment opportunities,” added Rooney. “We anticipate an extremely competitive domestic and international buyer pool, given the scale, quality and location of these assets and the ongoing investor confidence in the future of CBD retailing.”  

The assets will be sold together or independently with the agencies seeking expressions of interest internationally until November 16.