The heritage listed New Albury Hotel, occupied by Australian Venue Co, sold following a heated auction for $13.2 million.
Built in 1939, the five storey property with a distinctive curved façade is trading to a local hotelier at a 4.1 per cent net passing yield.
Six parties contested, according to the marketing agents, Maneti Quinlan & Associates’ Leonard Bongiovanni and DJ May Real Estates’ Doug May, who acted for receiver FerrierSilvia.
“We fielded enquiries from institutional and private investors and several experienced hoteliers, all attracted to the asset’s quality and the prospect of partnering with a blue-chip, long-term tenant in AVC,” Mr Bongiovanni said.
The property could also be seen to have development upside, on 2013 square metres in the town centre.
Knock out bids
At 491 Keiwa Street, Albury, the modern New Albury Hotel, operating as Beer DeLuxe, contains dining spaces and accommodation.
It is also licensed, with 15 electronic gambling machine entitlements (story continues below).
Bidding started at $8m, with the biggest individual offers at $900,000.
“The result was well above expectation,” Mr May said.
“We blew past the reserve and kept going, showing there’s still an exceptionally strong market for regional hotel investments, particularly those with an A-grade tenant in place” he added.
The sale comes three months since ex-Wallaby Matt Burke and his family sold Harvest Hotels the Northside Hotel at Lavington, an Albury suburb, for $16.2m.
In late 2020 the same buyer outlaid $9.6m for the town’s Brady’s Railway Hotel – about 600 metres from the New Albury Hotel.
Last week we reported a consortium including the Laundy, Cruikshank and O’Hara families spent over $26m for the Thomas Blamey Tavern at Wagga Wagga, about 125 kilometres north of Albury.
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