$20m-plus asking price for Fitzroy’s Tankerville Arms Hotel

The owners of historic Fitzroy pub and gaming venue the Tankerville Arms Hotel hope to reap the benefits of a hot inner-city pub market, after putting a price tag of more than $20 million on the property.

The 152-year-old hotel at 230 Nicholson St has a public bar, bistro and upstairs function room, but it is the 49 gaming machines and TAB that also lie inside that could woo buyers.

Both the hotel and business are being offered as a freehold going concern, just weeks after the Victorian Government announced changes to gaming machine legislation, which will provide longer licences for operators.

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Cropley Commercial’s Steve Cropley and George Iliopulos are marketing the Tankerville Arms in conjunction with with CBRE’s Scott Callow and Mark Wizel.

Callow says the sale of a hotel and the accompanying business is a rarity in the current market.

“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,” he says.

Wizel says there is also the potential to develop the site in future years.

“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 site’s 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.”

The hotel will be sold at an on-site auction at 12pm on Thursday, October 5.