The Collingwood Football Club has a long lease over the pub, until 2021, with options then to extend that lease to 2036.
It currently pays just over $830,000 per annum to lease the 1,662 square metre building, which includes a bar, restaurant, function room, courtyard and 11 accommodation rooms. It also includes 38 poker machines.
Kelemen Commercial director Andrew Egan is marketing The Beach Hotel, one of the biggest pubs to be offered for sale since South Yarra’s Arcadia, at the corner of Toorak and Punt roads in South Yarra in July. The Arcadia was asking about $7 million.
Last year, the Gunn Island Hotel in Middle Park sold for $8.55 million, Richmond’s Prince Alfred sold for $8.1 million and the Palace Hotel in South Melbourne fetched $3.7 million in some of the most hotly contested auctions for the year.
It’s understood interests associated with the Carlton Football Club unsuccessfully tried to buy two private gaming portfolios offered last year, Castello and Zagame.
The Beach Hotel has a total site area of 1,283 square metres.