Melbourne jewel goes under the hammer

One of Melbourne’s famed corner pubs opposite Parliament House is set to go to auction next month, unlocking a rare opportunity to gain a footprint in the city’s sought after hotel market.

Established in 1863, the Imperial Hotel is the third oldest pub in Melbourne and is now operated on a long-term lease by the renowned Open Door Pub Company, the group behind the recently revitalised Duke of Wellington in Russell Street and College Lawn Hotel in Prahran.

CBRE’s Josh Rutman, Mark Wizel and Scott Callow have been appointed as selling agents on the property, in conjunction with Cropley Commercial.

“Very seldom are we given the privilege to offer the market a sub $15 million freestanding CBD building, let alone in the prized Bourke Hill precinct which sees seven day traffic from residents, tourists, theatre-goers and commuters,” Rutman said.

“The opportunity to own a valuable piece of corner real estate in this tightly held precinct and enjoy the benefits a long lease to a powerhouse operator is something which we expect to appeal to a range of local and offshore investors,” he said.

“It’s on a long net lease (all outgoings paid by tenant) with fixed annual rental increases and I’ve just found out that the tenant is about to spend $3-4 million on a full refurbishment.”

Source:  The Shout - 21st April 2015