Melbourne pub DT’s Hotel, in Richmond, sold at auction last Friday for $2.25 million.
The historic two-level building at 164 Church Street, on the south-west corner of Highett Street, traded on a yield of 4.3 per cent.
It was acquired by a private investor with existing hotel and hospitality assets.
Formerly the Naughton’s Hotel and Citizens Park Hotel, the property has traded as the DT’s Hotel for more than 23 years. The operator, Paul Anthony, is three years into a 10-year rental agreement. Mr Anthony has four options to renew his occupancy, potentially until 2045.
“Rarely do city fringe pub assets hit the market and strong interest was received from both investors and future owner-occupiers,” Morley Commercial agents James Lie and Josh McMullin said, adding that the auction was hotly contested.
The pub sits on a 331 square metre block opposite Citizens Park, a short walk to Bridge Road shops, and its tram network.