Ascot Vale’s Laurel Hotel sold at auction on Thursday for $3.32 million.
The Mount Alexander Road site spreads 1167 square metres.
It was sold as an investment with a five year lease.
With options, the occupier can stay until 2027.
Based on the present return ($187,200pa), the price reflects a 5.6 per cent yield.
CB Richard Ellis Hotels’ Scott Callow was the agent.
Near the Laurel, the Church of Scientology is building a headquarters at the historic former Sisters of Mercy College.
The Ascot Vale Tram Depot is opposite that.
Elsewhere in the area, Coles recently completed a shopping centre on what was until recently a piece of the Royal Australian Showgrounds/public land.