The Celtic Club has paid $5.3 million for South Melbourne’s Limerick Arms Hotel.
The three storey pub at 364-368 Clarendon Street on the south west corner of Park, contains a bar, outdoor seating area , a function room and accommodation suites.
“The Limerick Arms offered a securely leased investment with a quality tenant who has extensive operational experience in a variety of pubs having operated [it] for more than seven years,” Mr Wells said.
“The tenant and the security offered by the lease agreement was a strong drawcard for the purchaser,” he added.
Celtic Club could have three bases
The Celtic Club sold its former historic CBD headquarters to Beulah International for $25.6 in 2016 – initially with plans to reoccupy a space within a 48-level redevelopment (story continues below).
It later moved to North Melbourne’s Metropolitan Hotel – where it was not permitted to set up electronic gambling machines – and rented a William St office.
Mr Wells said the group would work with the [South Melbourne] tenant and potentially make use of the function rooms to occupy.
Club president Professor Patrick McGorry added the association is looking at acquiring up to two more venues to replace its ex-CBD headquarters and now-closed North Melbourne leasehold.
“A tremendous amount of work has been done to secure this [Limerick Arms] investment on behalf of the club, and the…rate of return from the freehold, alongside the opportunity to work with the operator on hosting some club activities on site was attractive,” he added.
“At our recent Member Forum, we spoke about our multi-site strategy, underpinned by strong financial returns, and we hope that members are encouraged by our getting on with the job”.
The Clarendon St asset returns annual rent of $230,000 meaning the acquisition is being struck at a 4.3 per cent yield.