The Block Arcade, a Melbourne landmark, sold after more than 200 enquiries

After 20 years of ownership, The Block Arcade in Melbourne has been sold for an undisclosed amount.

The sale, negotiated by Colliers International and Allard Shelton, is expected to have achieved around $100 million, with an expressions of interest campaign operating until 3 April.

Both local and offshore investor interest was strong for the property, which had been held by the Kearney family. It’s being sold to Melbourne family the Cohens, who are said to have a long backstory with the Block Arcade and the surrounding retail precinct. The family owns adjoining property.

The sellers, including property investor and barrister, John Kearny, and wife Alison, are both members of the National Trust and restored the Block Arcade after their 1993 purchase.

The arcade itself was built in 1892, and includes retail and upper level commercial spaces.

Retail tenants include Telstra, Hopetoun Tea Rooms, Haighs Chocolates, Crabtree & Evelyn and Wittner.

The sale achieved 200 enquiries and 10 formal expressions of interest that spanned to Shangain and Moscow, according to Colliers International managing director of capital marks and investment services, John Marasco.

“The Block Arcade is a blue chip Melbourne CBD investment.  It also offers a number of exciting value-add opportunities including repositioning the asset to attract luxury retail brands to the precinct,” said Marasco.

Luxury brand retail tenants may be the next target of the Cohens.

Property manager of the arcade for the Keameys, Allard Shelton’s director Patrick Barnes, said that Collins Street is clearly where luxury retail brands want to position themselves.

“The Block Arcade is well positioned to capitalise on demand from luxury retailers trying to secure tenancies along Collins Street,” he said.

During 2013, the building attracted more than 3.5 million visitors.