Victorian pubs are in hot demand in 2016 as investors look to take advantage of low interest rates and strong yields
Pat Connolly, Colliers International Associate Director of Hotels, said Victorian hotels offered a strong investment alternative for purchasers looking to diversify their holdings.
"Pubs and hotels offer investors an attractive alternative – they are generally very well positioned with secure long term tenants and attractive returns,” Mr Connolly said.
“Bank term deposit rates are typically around 2-3% at the moment, and purchasers are taking advantage of strong yield offerings of circa 4.8-5.5% in metropolitan areas and up to 9.5% in regional areas.
“Pub properties typically have secure, long term tenancies in place and are usually very well positioned, often with great future development potential."
Mr Connolly and colleague Will Connolly are currently marketing the Sam Knott Hotel in Wesburn, which is expected to attract a price tag of around $1million.
It follows a series of sales in the latter half of 2015, include Bridie O’Reilly’s in Brunswick ($6.03million), Dan O’Connell Hotel in Carlton ($2.8million) and The Laird Hotel in Abbotsford ($2.66million). All were sold by Colliers International’s Hotels team.