Port Melbourne hotel ready for owner Exchange
A landmark pub in the heart of Port Melbourne is set to offer buyers far more than a humble parma and a pint.
Sale advocates say The Exchange Hotel will ensure any new buyer a steady investment income with one of Australia’s largest dining companies locked in and already luring the punters.
World-class hospitality group Australian Venue Co – which employs around 4500 staff at more than 150 venues across Australia and New Zealand – is signed up under a tenancy agreement for the next seven years.
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CBRE Hotel’s Mathew George and Scott Callow, together with CBRE Melbourne Strip Retail Investments’ Rorey James, Mark Wizel and JJ Heng have been appointed to sell the property on behalf of a private owner.
The Exchange Hotel is just back from the beach in Port Melbourne.
Located on the corner of Bay and Rouse streets, the pub offers street-side dining and with a 3am general license.
The lease ensures an annuity income, a six-month bank guarantee and rental growth through to April 2026 with an additional 5×5 year options taking the lease term to 2051 with all options.
George says it is a unique opportunity.
“An opportunity like this with annual growth, a national tenant and bankable security represents investors an exciting alternative to shares or low yielding term deposits,” he says.
The Exchange Hotel.
“The anticipated yield range of over five per cent should attract strong interest from both domestic and international buyers wanting to secure a famous Port Melbourne corner property with a very solid national tenant and the multiple future development options offered by mixed-use zoning.”
“Having sold the vast majority of Bay St property presented to the market over the last two years, we have seen continued interest in the Port Melbourne retail investment market as capital continues to flow into the commercial sector from alternative investments given stable market conditions.”
The Exchange Hotel will be sold by public onsite auction on Friday November 29 from 1pm.
