CBRE Hotels has sold the freehold investment in The Montague Hotel on a tight sub 4.5% yield.
CBRE Manager Will Connolly sold the property at 355 Park Street, South Melbourne off-market on behalf of the Fermanis family. The hotel is underpinned by an 18-year lease, with further five-year options, to its operator.
Vendor Noel Fermanis said: “While our family and I weren’t actively seeking to sell the property, the offer presented to us was simply too attractive to ignore and in the end we believe we achieved an incredible result, while the purchaser also secured an asset they had a huge desire for.”
Mr Connolly noted the sharp yield achieved represents the incredible demand within the hotel market for securely leased pub assets.
“The sale of The Montague Hotel is a perfect example of our market’s appetite for secure investment pub assets. With a well-regarded tenant and in excellent condition, this kind of opportunity is highly sought after - as highlighted by the speed at which buyers secure hotels on and off-market,” Mr Connolly said.
The property is situated on a prime 227 sqm corner block within a dense residential area. It boasts double street frontage plus Neighbourhood Residential zoning, providing flexibility for future alternative use.
The Fermanis family is also currently marketing its renowned Abbotsford pub, The Retreat Hotel, which is for sale via auction on March 2 at 12:30pm.
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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 (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.