Espy Hotel sold
EXCLUSIVE
Sand Hill Road has sold St Kilda’s landmark Esplanade Hotel, or The Espy, after five years and a renovation.
The freehold is speculated to be trading for $64 million to the Cohen family, according to sources.
The vendor outlaid $13.2m in 2017.
Four months ago, it sold the leasehold to Australian Venue Co, along with seven other venues, for a combined c$100m.
Based on the property’s annual rental return, the sale price reflects a c4.9 per cent yield.
Gorman Allard Shelton Joseph Walton and Jonathan McCormack were the agents.
The Espy
Sand Hill Road, directed brothers Andy and Matt Mullins, Andrew Larke, Doug Maskiell and Tom Birch, is understood to have spent about $15m on The Espy refurbishment, which was completed in December, 2018 (story continues below).
Developed in 1878 at 11 The Esplanade, the five floor venue contains 3203 square metres with12 bars, two bistros, function rooms and live music stages.
There is also a large terrace with retractable roof.
It is licensed for 1696 patrons.
AVC is on a lease expiring in 2042 with three 10 year options.
Its rental agreement also includes fixed three per cent rent rises, plus cap and collar market reviews.
This story has been updated with the purchaser.
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