Boundary Hotel: Bentleigh East pub sells for $33m
Bentleigh East’s Boundary Hotel has sold to a private investor for an impressive $33 million.
The property features a long-term lease to ALH, part of Endeavour Group, with an initial expiry in 2028.
JLL Senior Director Stuart Taylor said the sale was via public tender on the eve of Melbourne’s latest lockdown last week.
“The result was 30 per cent above the most recent valuation of the property,” Mr Taylor added.
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“It’s a huge result and in our view it highlights the real depth of buyer confidence and the demand for well-located and leased commercial investments, even with a looming lockdown.”
He said the freehold interest in the pub had attracted multiple private investors as the “most competitive buyers” for the 4916sq m site.
The property occupies a high-profile corner of Centre Rd and East Boundary Rd in the heart of Bentleigh East, with a “favourable” Commercial 1 zoning over the majority of the block.
“The asset offered investors a secure income stream, underpinned by the largest integrated liquor and hospitality business in the country,” Mr Taylor said.
“Investor sentiment for long lease assets has never been stronger, fuelled by a positive interest rate environment and flight to quality.”
The Boundary Hotel had also generated significant interest from offshore investors as a long-term banking opportunity.
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