Hansen family list trophy Melbourne retail portfolio
The Hansen family is selling down the last pieces of a prominent building in Melbourne’s retail heart – ending a 23 year association.
The trophy portfolio – four shops covering 736 square metres, the ground floor and basement of 97-103 Elizabeth Street, which also faces Equitable Place – should fetch over $15 million.
Based on the yearly return – $797,043 – that would reflect a yield of over five per cent.
More income could be reaped if a 227 sqm basement is repositioned and re-let; some 10.25 million pedestrians pass the block annually, according to Cushman & Wakefield’s Anthony Kirwan, who is marketing the properties with Leon Ma, George Davies, Jeff Ha.
The listing comes four months since a China based investor picked up a neighbouring four level retail and office investment, 105 Elizabeth St, for $7.55m – or $30,443 per sqm of lettable area.
Coincidentally, Cushman & Wakefield brokered that deal too.
736 sqm in retail heart
It was in 1971 Ken Hansen founded ASX-listed Hansen Technologies, nowadays led by son, Andrew.
In 2001, the late executive paid $5.5m for 97-103 Elizabeth St, then the Hotel London (story continues below).
The upper floors, with 146 suites, were sold three years later to TPIG for $3m.
Coincidentally that strata component, now operating as an Ibis Budget, traded again in 2021 to Sydney hotelier Eduard Litver, for $23.75m.
Mr Kirwan said the remaining shops are in the city’s retail core, between Collins St and the Bourke Street Mall, 400 metres to Flinders St, with busting pedestrian traffic.
“The portfolio consists of four prime strata retail investments…anchored by blue-chip national tenants, Quick Service Retail, Betty’s Burgers and Zambrero,” according to the executive.
Small businesses Decennium Australia and Madamimadam occupy the Equitable Pl tenancies.
The weighted average lease expiry by income 3.5 years.
PWRE is transaction manager for the owner, Kymarnam Pty Ltd.
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