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Newmark completes acquisition of Bourke Street Mall
Hall & Wilcox has advised Newmark Capital on the acquisition of the iconic Melbourne building.
Tony Zhang
Firm: Hall & Wilcox (Newmark Capital).
Deal: Hall & Wilcox has advised Newmark Capital Limited on the $121 million acquisition of the landmark David Jones building at 299 Bourke Street, Melbourne, and the establishment of the Newmark Bourke Street Mall Trust.
Area: M&A.
Key players: Partners Harry New and Mark Inston led the Hall & Wilcox team, assisted by partner Vince Battaglia, senior associate Jeanette Lui, lawyer Tammy Qu and Charlie Renney and law graduate Nina Mao.
Deal significance: Newmark has acquired the six-storey 1930s Bourke Street Mall building for a new standalone trust backed by investors. It plans to refurbish the building when David Jones’ lease expires and re-lease it, with the lower three levels of retail to include one or two flagship stores and the upper four levels to be converted into “loft-style” office accommodation.
Hall & Wilcox acted for Newmark on negotiating the debt facility with a major Australian bank and fundraising of up to $90 million in equity from investors.
“We feel privileged to have acted on a milestone acquisition by Newmark of another iconic Melbourne commercial building to add to its stable, which already includes The Jam Factory and the Como Centre, all of which we are delighted to have acted on,” Mr New said.
“This transaction has been particularly satisfying given the current COVID-19 environment in Victoria and the complexities it has introduced into the execution of this kind of transaction. It says a lot about Newmark and the strength of its reputation and standing to have successfully completed the transaction at this time.”
