Victoria’s ‘most visible pub’ sold after 50 years
The Poulos family has sold the Kalkallo Hotel freehold after over 50 years.
With origins to the 1860s, the pub, on 2022 square metres at 1324 Hume Freeway, collected $2.23 million reflecting a c6.6 per cent yield.
The investment was offered with two neighbouring development sites – an additional c1.65 hectares – and speculated to be worth a total of c$4.5m.
Brix Property Group snapped up the lot.
Victoria’s most visible pub
Dubbed Victoria’s most visible pub by agents – and the last one standing from a half dozen which serviced horse drawn traffic between Beveridge and Campbellfield – the Kalkallo Hotel was majorly rebuilt in the 1920s.
It was extended several times including with a general store and post office which operated for 40 years from the 1930s.
Formerly known as the Donnybrook Hotel, the Poulos family changed its name in the 1970s.
A lease to a different family expires, with options, in November, 2032.
With a 3am liquor licence, the venue includes a bottle shop, beer garden, bistro and function room.
The listing was triggered when three siblings inherited the asset from their parents last year.
CBRE’s Mathew George, who was appointed with Daniel Eramo, said the pub has the potential to be refurbished into a lucrative destination venue (story continues below).
Income, development upside
Brix is speculated will propose medium density housing, convenience retail and commercial on the vacant tracts.
“This landmark hotel is positioned at the gateway to Melbourne between two of the largest established residential communities in the state [Cloverton and Merrifield],” Brix managing director Adam Brick said.
“This acquisition represented an opportunity for us to purchase an income producing asset with excess land in a strategic location,” he added.
“The extensive Hume Freeway frontage [about 120 metres] and immediate access to reticulated services means the residual land provides an opportunity for redevelopment in the short to medium term,” according to the executive.
“The Kalkallo site adds to the other active Brix developments in Victoria which includes townhouses in Mernda and Mordialloc, industrial land and warehouses in Seaford, [and] retail, offices and warehouses in Cheltenham”.
At Maidstone, in Melbourne’s west, the group recently developed and sold down a 7-Eleven, Starbucks, car wash and three shops.
Another component of that 9300 sqm project, on Hampstead Rd, is earmarked for a self-storage facility.
Also today we are reporting that Brix and Costa snared two Brisbane industrial development sites.
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