ALE Property Group is banking $15.66 million from Cheltenham’s Tudor Inn.
The price reflects a net passing yield of 3.79 per cent, making it the tightest of the eight hotels the investor has sold this year.
It is also $3.81m – or 32 pc – over the June 30, 2021, book value.
Best until last
The Tudor Inn was only the second hotel ALE offered this year via tender; all the others were auctioned.
Mr Mufale said eight offers were received – five from international groups.
“An unconditional outcome and 90 day settlement were achieved as a result of the heightened competitive tension generated by the sale process,” the agent added.
“To generate over $100m in offers represents the increased weight of capital currently competing for blue-chip assets in Melbourne’s commercial property market,” according to the executive.
Mr Heng said “large Activity Centre [zoned] landholdings with income are highly sought after by international investors on long-term purchasing strategies” (story continues below).
In June, ALE banked $33m – a 4.23pc return – from the Boundary Hotel at nearby East Bentleigh.
That property also traded following a tender campaign.
In regional Victoria, the Morwell Hotel sold for $3.06m – reflecting a 4.74pc yield and a 13pc premium to book value.
The other five assets ALE divested this year were in Queensland including Toowong’s Royal Exchange Hotel, which achieved $14.05m (a 4.01pc return), Caloundra’s Pelican Waters Inn for $10.8m (4.15pc) and the Noosa Reef Hotel for $13.9m (4.98pc).
In Kedron, the Edinburgh Castle traded for $7.5m – a 4.65pc yield while the Kedron Park Hotel exchanged for $4.6m (4.98pc).
The Cheltenham property contains a pub and bottle shop covering less than half of the 4789 sqm site.
There are also 60 car parks.
The occupier, Endeavour Group, is on a lease expiring in seven years; with options it can stay until 2068.
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