Sky high tourist attraction up for grabs

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THE penthouse level Eureka Skydeck tourist attraction and ground floor retail within the Eureka Tower skyscraper developed by Grocon, is on the market.

Levels 88 known as Eureka Skydeck, one of the highest observation decks in the Southern Hemisphere; level 89 occupied as a high-end restaurant & event space ‘Eureka 89’ and ground floor retail situated in the Eureka Tower at 7 Riverside Quay, Southbank have been offered via a formal expressions of interest campaign on behalf of Journey Beyond.

JLL’s Josh Rutman, MingXuan Li, Michael Godfrey and Peter Harper have been exclusively appointed to handle the campaign.

The property is leased to Journey Beyond which will continue to occupy the ground floor retail and both upper levels on an initial 20-year lease with a commencing rental of approximately $3.3 million and fixed annual rental increases, providing cash flow certainty.

Rutman said this investment opportunity presents an X Factor that will attract worldwide attention and will draw comparisons to other prestigious top floor offerings around the world.

“As one of the highest public observation decks and restaurants in the Southern Hemisphere, Eureka Tower offers highly functional floor plates with floor to ceiling windows taking advantage of unparalleled 360-degree views of Melbourne,” he added.

Harper said the security of a long-term lease will be well received in the market.

“Journey Beyond is Australia’s pre-eminent, experienced based tourism and hospitality operator and we believe that the long triple net lease and strong tenant covenant will be attractive to a wide range of purchaser groups including passive investors, SMSFs and high net worth individuals.” Harper said.

Journey Beyond operates numerous iconic brands including The Ghan, Indian Pacific, Outback Spirit Tours and Horizontal Falls Seaplane Adventures.

Journey Beyond CEO Chris Tallent said the Eureka Skydeck and Eureka 89 are two high performing assets in its portfolio with over 500,000 visitors annually.

“We have a number of exciting initiatives under development for the Eureka Skydeck, due for completion in Mid-2021,” he said.

Southbank’s largest ever strata sale was transacted by JLL in 2020. Melbourne Square Shopping Centre located at 93-119 Kavanagh Street, is approximately just 450 metres from Eureka Tower. The Woolworths anchored shopping centre was sold for $70 million, on an initial yield of 4.37% and was acquired by Primewest.

The EOI campaign closes on 31st of March 2021.

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