Top pubs go under hammer
FOUR landmark Melbourne pubs went under the hammer yesterday, selling for almost $30 million. The Mountain View Hotel in Glen Waverley was sold for $10.9 million, followed by the Eltham Hotel at Eltham ($7.9 million), the Royal Hotel at Essendon ($6.785 million) and the Westmeadows Tavern at Westmeadows ($4.4 million) for a total of $29.98 million.
FOUR landmark Melbourne pubs went under the hammer yesterday, selling for almost $30 million. The Mountain View Hotel in Glen Waverley was sold for $10.9 million, followed by the Eltham Hotel at Eltham ($7.9 million), the Royal Hotel at Essendon ($6.785 million) and the Westmeadows Tavern at Westmeadows ($4.4 million) for a total of $29.98 million.The properties, leased by the Australian Leisure & Hospitality Group, were offered for sale as part of a larger hotel portfolio; three Brisbane hotels are to be auctioned on March 3.CBRE Hotels and Burgess Rawson negotiated the auction sales, held at Crown Casino. The Mountain View Hotel sale price translated to a sale yield of 6.95 per cent. The other yields were Westmeadows Tavern (6.2 per cent), the Royal Hotel (6.27 per cent) and the Eltham Hotel (6.43 per cent).The Mountain View, Royal and Eltham hotels sold to local private investors, while the Westmeadows Tavern went to a Sydney-based buyer. The properties were offered for sale with about 19 years remaining on leases to ALH, with options to renew for a further four, 10-year terms.The leases include yearly November consumer price index rent adjustments and a collared market rent review in 2018, giving the incoming owners a secure and unusually long-term, inflation-indexed revenue stream.
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