Mazen Tabet has snapped up the Village Belle freehold and a three storey block of apartments behind it.
The $31 million price reflects a 4.65 per cent yield.
The St Kilda pub underwent a $15m extension and refurbishment in 2017, which was also when the 12 flats were added.
At 202 Barkly Street, staring down Acland, the Commercial 1 zoned site spreads 1308 sqm.
The vendors – siblings David and Stephen Shannon and their brother-in-law, Brett Cuthbert with long time friend Mark Burnett, held it since 2006.
JLL’s Will Connolly, Stuart Taylor, Tom Noonan and MingXuan Li were the agents.
Compliments our portfolio: Tabet
The Village Belle was listed shortly after Australian Venue Co signed a 10-year lease.
With options, the operator can stay until 2071.
The property comes with 31 electronic gambling machine entitlements.
“The Village Belle certainly compliments our current portfolio, with its excellent presentation and strength of tenancy,” Mr Tabet said.
The publican also owns the Portsea Hotel freehold (story continues below).
In January, he formed part of a partnership to pick up Phillip Island’s ex-Isle of Wight site with plans for a major hospitality project.
In 2017 Mr Tabet acquired St Kilda Road’s Royce Hotel, which is presently being refurbished.
Furious interest: agent
Mr Connolly said the campaign generated furious interest, from a mix of local and offshore high net worth investors.
“As expected, the Village Belle proved to be one of the most hotly contested offerings for 2021, not just within the hotel investment space, but also the retail sector,” he added.
“All corners of the market identified with the obvious esteem of the property, being one of Melbourne’s most spectacularly presented venues after its extensive…renovation and restoration,” according to the executive.
“Just as important though, the property was underpinned by the security of a blue-chip covenant, with investors inheriting one of Australia’s largest hospitality operators”.
Mr Stuart said the transaction highlights the amount of private capital chasing metropolitan Melbourne assets, especially those considered ‘trophy retail’.
“The transaction also reflects the ongoing focus for investors in tenant covenant, with the market responding extremely well to the long-term lease to AVC,” he added.
“We’ve no doubt this level of interest for high-end assets of this nature will continue into 2022”.
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