Outskirt Melbourne pub sells for $8m
A large-format hotel freehold on Melbourne’s outskirts has sold for $8.5 million.
A syndicate led by Oliver Hume is buying the Central Hotel at Beaconsfield.
Blueswan Australia, controlled by experienced publicans the Deegan family, will retain the leasehold with plans to expand the business’ offering.
The improvements cover about 820 square metres
An extension is also expected.
The leaseback sale comes weeks after Bluestone settled on the freehold, for $8m – a 3.31 per cent yield, the marketing agents said.
The site, 1 Old Princes Highway, spreads c5797 sqm.
Historic pub changes hands
Established in 1855 as the Gippsland Hotel before operating as the Bowmans Inn, the venue, nowadays also known as ‘The Cench’ includes a bar, bistro, beer garden and entertainment facilities.
The property has a long association with the township, including hosting Prince Alfred, the Duke of Edinburgh, in 1869.
“The sale…is another strong indicator for the pub sector in Victoria, with confidence continuing to rise off the back of very strong state fundamentals, namely population growth and dwelling approvals across growth corridors,” Stonebridge Property Group marketing agent, Nic Hage, said.
“Whilst the yield of 3.31pc is sharp, the asset was sold to an operator with plans to expand the offering and capitalise on the surplus land,” he added (continues below).
Rorey James and Kevin Tong were co-agents.
This pocket of Beaconsfield is about 44 kilometres south east of Melbourne’s CBD.
Redcape buys another historic pub
Separately, Redcape Hospitality has expanded its Sydney CBD exposure, acquiring the leasehold interest in the Arthouse Hotel for a speculated $7 million.
The venue, within The Galeries retail precinct on Pitt Street, had been operated by the McBeath family for 26 years.
Trading with a 24-hour liquor licence, with 21 gaming machine entitlements, annual revenue was put at c$8m.
The acquisition gives Redcape control of one of the larger hospitality footprints in Sydney’s Midtown precinct, a pocket benefiting from recent office development and transport infrastructure investment including the Gadigal Metro station.
HTL Property’s Dan Dragicevich and Sam Handy were the agents.
Redcape has also recently bought Woolloomooloo’s Frisco Hotel and the Plough Inn at Brisbane – both historic assets.
Also in the New South Wales capital this week, Justin Hemmes was confirmed as the buyer of a historic vacant RSL – a deal we covered last month.
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