Melbourne, 10 March 2015 – Investor demand for high profile pub opportunities in Melbourne is to be tapped again with the sale of Carlton’s iconic Prince Alfred Hotel.
The 1920s corner hotel is located opposite the gates of Australia’s top ranked Melbourne University.
CBRE Hotels’ Scott Callow and Joseph Du Rieu and CBRE City Sales’ Mark Wizel have been appointed to lead the marketing campaign together with Cropley Commercial. The hotel will be auctioned on March 26 and is tipped to be highly sought after by local, national and international investors and developers at its public
“Hoteliers and developers are continuing to vie for premium assets of this ilk, where vacant possession is available in the short term,” Mr Wizel said.
“The Prince Alfred Hotel is being offered to the market in a time when the supply of this style of property is limited, but as demand from investors and developers continues to surge, underwritten by the current low cost of debt.”
The hotel benefits from a prime location on the door step of Melbourne University at 171 Grattan Street. Vacant possession is available in June 2015, allowing potential purchasers to take control of the business upon expiry, or explore alternative development options subject to the relevant planning approvals.
A draw card will be the hotel’s high exposure site of approximately 310sqm, which is zoned Mixed Use.
“As a result, we expect significant interest from developers seeking to capitalise on the fact that the site is situated adjacent the Melbourne University,” Mr Callow said.
A precedent was set last year, according to CBRE’s Scott Callow, when the Corkman Irish Pub, one block to the south, was the subject of a highly competitive auction, which resulted in a sale price of more than $10,000 per square metre of land.
“Demand from local and international buyers for well-located hotel assets remains extremely strong as evidenced by the recent sale of the Prince of Wales Hotel in St Kilda, which reflected an initial yield of 5%,” Mr Callow added.
“We are looking forward to seeing how the market responds to the opportunity to acquire what is arguably the best corner in Carlton’s university precinct.”
CBRE’s Joseph Du Rieu added that there was pent up demand for high profile corner pubs from both developers seeking strategic land holdings and publicans with a view to repositioning historic venues.
The public auction for the Prince Alfred Hotel will be held on-site at 11:00am on Thursday March 26.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.