Cornerstone Receivers Sell Two More Hotels

In Fairfield, the Grandview Hotel, on the corner of Heidelberg Road and Station Street, is also believed to be under contract, for just under $500,000.
 
The sales follow that of Melton’s Q-Lounge, a flash pub built within the walls of a former Centrelink office, which traded for just under $500,000 earlier this year.
 
The pub owners have purchased themselves a long-term lease over their respective buildings, but not the actual property.
 
One pub asset within Cornerstone’s portfolio that included a building (known as a freehold), according to sources, is the Tote in Collingwood, which failed to sell after several months, and is now understood to have been withdrawn from sale. Cornerstone paid $3.2 million for The Tote in 2007. A lease to the existing Tote tenant expires in October.
 
Jones Lang LaSalle selling agent Mathew George marketed the Great Northern, Grandview and Q-Lounge, on behalf of administrator Ferrier Hodgson, but declined to elaborate on buyer or price, when contacted by The Age.
 
Cornerstone went into receivership in March, after struggling to pay debts accrued during a $65 million spending spree in 2007.
 

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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