Eureka Skydeck, restaurant sell for almost $60m in mega deal
Melbourne’s iconic Eureka Skydeck and restaurant have notched a mega deal and sold for circa $60m in a record-breaking sale.
But the floors will continue to provide views of the city, bay and beyond to tourists and locals alike with a 25-year leaseback to the current tourism and hospitality operator, Journey Beyond, part of the deal.
Levels 88 and 89 of the popular city landmark recently sold to RF CorVal, a Sydney-based fund manager linked to Multiplex Group CEO Andrew Roberts, after being listed for about $45m in February.
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The dual sale represents one of the largest single ownership strata titles in Melbourne and is a record per square metre for the city’s commercial real estate sector.
Journey Beyond CEO Chris Tallent said they were “delighted to complete the sale”, which “underpins the future growth of this iconic experience in the heart of Melbourne”.
He said the business was set to launch some “exciting new initiatives” for the Skydeck, which are currently in the works and set to be completed later this year.
JLL agent Josh Rutman, who had the listing with MingXuan Li and Peter Harper, said the well-known attraction had enticed bidders from traditional tourism and hotel groups, private individuals and trusts.
He said the sale was a boost for the city’s post-lockdown tourism bid.
“This transaction is another clear vote of confidence for Melbourne’s tourism industry more broadly,” Mr Rutman said.
Level 88 is currently operated as an observation deck with 360-degree views across Melbourne, while level 89 — known as Eureka89 — is a flashy, high-end restaurant.
Together they attract approximately 500,000 visitors a year.
Head of Transaction at RF CorVal, Oliver Picone said they were drawn to make a deal on the sky-high properties for their current, successful lease, as well as its future residential prospects.
He said Journey Beyond, which also operates brands including The Ghan, Indian Pacific, Outback Spirit Tours and Horizontal Falls Seaplane Adventures, had a “strong track record of operating a successful business out of the property and providing a great experience to its visitors”.