Charter Hall bags another trophy Melbourne pub
In Victoria’s priciest pub deal this year, Charter Hall has snapped up the city’s Garden State Hotel, behind 101 Collins Street.
The trophy two level venue, for years trading as Rosati’s restaurant, set it back $35 million, sources say, a circa four per cent net passing yield.
Vendors, brothers Robert and Victor Zagame, paid that restaurant’s owner, Piero Gesualdi, $5m in 2007.
It was formerly owned by a 101 Collins St landlord which, to protect that office tower’s southern view, slapped a restriction on the airspace being built into.
Charter Hall will hold it with a c$4 billion hospitality portfolio, split throughout various funds.
Since 2021, the group has contolled the freehold to the city’s Young & Jackson, opposite Flinders Street Station.
Another trophy city pub
With 1437 square metres over two floors, the Garden State Hotel at 95-101 Flinders Ln contains an Italian restaurant, Tippy Tay, and basement bar, the Rose Garden.
Australian Venue Co is on a lease expiring 2042 with options (continues below).
Licensed to trade seven days, the tenant is planning a substantial capital upgrade including activating the rooftop – improving the potential income.
The site spreads 817 sqm.
JLL’s Will Connolly, Ben McDonald, Josh Rutman and MingXuan Li with McVay Real Estate’s Sam McVay and Dan McVay were the agents.
It is the city’s priciest pub deal since the Bells Hotel in South Melbourne traded August c$20m, they said.
AVC occupies multiple Charter Hall venues; earlier this year the pair secure a Hervey Bay pub.
“This [purchase] extends our strong relationship with AVC following the privatisation of the $1.3 billion HPI REIT earlier this year,” a spokeswoman said.
“Other iconic pubs leased to AVC owned by Charter Hall include the Regatta in Brisbane, and our portfolio of iconic hospitality assets includes Young & Jacksons in Melbourne, leased to our largest hospitality tenant Endeavour,” she added.
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