Investors, owner-occupiers and developers set to flock to flexible inner city pub offering
An inner city freehold hotel is expected to have investors, owner-occupiers and developers alike honing in on the popular Melbourne suburb of Abbotsford.
Colliers International’s Guy Wells, Pat Connolly and Ted Dwyer have been appointed to sell The Laird Hotel at 149 Gipps Street in Abbotsford by auction on June 25.
The Laird Hotel is a traditional two-storey corner pub with a ground floor bar, pool room, nightclub area and large outdoor courtyard. The first floor provides six hotel accommodation rooms and common lounge area and kitchen.
Mr Wells said the property would suit all buyer groups, from investors and owner-occupiers to developers.
“With its sought after inner city location, proximity to public transport and the flexibility offered by the current lease length, we expect this asset to attract significant interest from a broad range of buyers,” Mr Wells said.
“The Laird Hotel is situated on the south eastern corner of Gipps and Henry Streets within the popular inner city suburb of Abbotsford, approximately 2km east of the Melbourne CBD.
“It is offered with the benefit of a lease returning $123,000 per annum, excluding GST, with three years remaining on the current lease term. Underpinning the investment appeal is the fact that the hotel has been operated by the current tenants since 2009 and they have expressed an interest in extending their lease should the property be acquired by an investor.
“As well as benefiting from a short term holding income, the 541sqm, Commercial 2-zoned corner allotment presents a unique development opportunity in the short to medium term (STCA)."
Mr Connolly said Abbotsford was home to a mixture of residential and commercial properties, which was reflected in The Laird Hotel’s surroundings.
“The Abbotsford area has been reincarnated in recent times and is now one of Melbourne’s most sought after suburbs,” he said. “It is conveniently located within easy reach of the Melbourne CBD and is surrounded by the popular suburbs of Collingwood and Richmond.
“Collingwood Train Station is located just 175m from The Laird Hotel, whilst busses pass along the nearby Hoddle Street (100m). The popular Victoria Street dining precinct is around 700m."
Mr Wells said in the current interest rate environment, there had been a surge in appetite for inner city pubs in recent months.
“Where freehold yields for inner city pubs were in the 6% range in 2012-2013, we are now witnessing sales at 5% and below in 2015,” he said. “The inner city corner pub with potential redevelopment opportunities will continue to be well received in the market.”