Colin Delutis’ DeGroup has quietly purchased the Peninsula Cinemas Sorrento as a long-term hold.
Also known as the Athenaeum, the building and neighbouring structures, all up covering 1123 square metres at 26-36 Ocean Beach Road, is setting the group back $11 million.
The asset has only traded twice in 75 years – the last time, in 2017, when Village Roadshow founder and majority owner the Kirby family sold it for $5m with a long term leaseback.
Vinci Carbone’s Frank Vinci brokered the latest deal, off-market.
The property is diagonally adjacent to the Continental Hotel which reopened last weekend following a $100m-plus renovation undertaken by Trenerry Group with the Smorgon and Kanat families.
It is also near a collection of properties snapped up over the years by Lindsay Fox including, most recently, 856-858 Melbourne Rd, a site which backs onto Ocean Beach Rd (story continues below).
DeGroup doubles down in Sorrento
As well as the cinema, 26-36 Ocean Beach Rd contains a restaurant freehold leased to Sardo.
Elsewhere in the street, Mr Delutis, a former Carlton Football Club vice-president, recently completed a small shopping centre on an ex-Mitre 10 outlet covering 2601 sqm at #80-96.
Valued at $50m, it includes nine shops which have attracted tenants including fashion brands including Billabong, Kookai, Platypus and Style Runner, as well as BWS and Sushi Sushi.
At the same time the Kirby family offered the Sorrento property, it sold the Peninsula Cinemas at 30-34 Rosebud Parade, Rosebud, again with a leaseback, for $4.377m reflecting a six per cent yield.
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