ASX-listed ALE Property Group is offering another hotel freehold – this time at Cheltenham.
The Tudor Inn at 1281 Nepean Highway was last valued by the vendor six months ago at $11.3 million, assuming a 5.25 per cent capitalisation rate.
On a 4789 square metre Activity Centre zoned site at the south west corner of Goulburn Street – walking distance to Westfield Southland – it contains 60 car parks.
Two improvements – the two level hotel and a BWS bottle shop – contain 2152 sqm, covering just 45 per cent of the holding.
The listing comes a fortnight since ALE sold Bentleigh East’s Boundary Hotel for $33m – a price reflecting a 4.22pc yield and 32pc premium on its guide.
In April the group banked $13.9m from Noosa Heads’ Noosa Reef Resort.
In March, the company offloaded four more investments – in Queensland and Victoria – for a total of $26m (story continues below).
ALH at Cheltenham
The Cheltenham property is tenanted to ALH Group for seven more years.
With options however the occupier can stay until 2068.
“We’re anticipating strong interest in the offering driven by the property’s triple net lease, bankable landholding and long-term future upside,” Mr Mufale said.
“Income producing assets underpinned by quality covenants with good lease tenure are highly sought after by opportunity-starved domestic, interstate and international investors at present,” he added.
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