The renowned Tankerville Arms Hotel, Fitzroy is being offered for sale, with price expectations exceeding $20 million.
Constructed in 1865, the 230 Nicholson Street property is situated on a 1,087 sqm site over three titles and comprises a public bar, bistro and a first-floor function room which can accommodate up to 120 patrons.
Cropley Commercial’s Steve Cropley and George Iliopulos in conjunction with CBRE Hotel’s Scott Callow & CBRE City Sales’ Mark Wizel have been appointed to exclusively market the freehold going concern on behalf of local owners.
Mr Callow said: “It’s extremely rare that a gaming freehold and business is offered for sale by way of public auction. The vendors are very genuine in achieving a sale in a market that is recognised as being extremely tightly held.”
The business has a strong gaming emphasis, operating 49 gaming machines and TAB.
“The recent announcement around the future of gaming entitlements has given operators greater confidence to continue investing in the industry,” Mr Iliopulos said.
Mr Wizel added: “What is unique about this property is that while there is high value attributable to the gaming rights and public bar, there is also significant development potential given the sites location.”
“Corner land holdings in such close proximity to the CBD are rare and command significant interest from offshore developers, in particular, Singaporean, Malaysian and Chinese. Developers are confident that there is strong demand for high density living in Fitzroy given the already high levels of apartment living.”
Mr Iliopulos added: “There has also been a significant increase in the median house and unit price within Fitzroy, which has been driven by demand to live close to the Melbourne CBD. People want to live within two kilometres of the city and have high accessibility to the amenity that it provides.”
Land values in Melbourne’s inner suburbs have increased significantly in recent years off the back of rising CBD land values, pushing developers to look outside the CBD for development site opportunities.
The Tankerville Arms Hotel is being offered for sale via on-site auction on Thursday, October 5, 2017 at 12pm.
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