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TH Real Estate acquires interest in Myer Bourke Street, Melbourne

Myer Australia

TH Real Estate has agreed to acquire a 33% interest in the Myer Bourke Street Melbourne, Australia, on behalf of TIAA, for a purchase price of AUD $151.3m. The asset is the department store chain’s leading flagship location in one of the country’s top CBD retail destinations. The stake is being acquired from the Myer Family and is being invested alongside two existing investors.

The nine storey property of just under 40,000 sq m (430,000 sf) was built in 1914 and fully refurbished in 2011. It is entirely let to Myer Holdings Limited (‘Myer’). Myer Bourke Street, Melbourne occupies a landmark site within the heart of the Melbourne CBD shopping precinct with unparalleled frontage to the pedestrianised Bourke Street Mall.

Nick Evans, Head of Australia, said: "The acquisition fits our strategy of owning dominant, well-located, prime retail properties, that cater to today’s occupier needs, in the world’s most attractive real estate markets. The property’s location at the centre of the strengthening core retail precinct in the Melbourne CBD is supportive of Myer’s long term occupancy of its flagship store."

TH Real Estate is one of the world’s largest retail real estate investors with over AUD$42bn of retail assets globally. This represents the third foray into Australia retail real estate for the fund manager, which acquired Greenwood Plaza, North Sydney and Mount Ommaney, Brisbane in October 2014.

Jayson Egan, Head of Asset Management, Australia, added: "The underlying retail fundamentals and long indexed lease structure ensure sustainable income returns making it a defensive long term investment. Melbourne’s metropolitan population is currently the fastest growing of any capital city in Australia, which supports the long term growth in Melbourne’s CBD retail spend."

Issued by TH Real Estate (Australia) Limited ABN 98106 690 444, AFSL 460770. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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