Redfern’s former London Tavern sold amid heavy interest

With its decorative facade and elaborate exterior mouldings, a former Redfern hotel has been snapped up amid unprecedented interest.

The building, located at 105 Regent St, sold for $5.28 million.

JLL’s Gordon McFadyen and Dylan McEvoy credited an active marketing campaign for the overwhelming interest.

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The building, which remains fully leased, comprises a student boarding house and three retail tenancies.

“There was an unprecedented level of interest in the property and we received more than 240 inquiries in the lead-up to auction day,” McFadyen says.

“The buyer, a local family trust, was attracted to the city fringe location.”

The latest sale comes amid JLL research which recorded $560 million of investment activity in the Sydney fringe during 2018 compared with the 10-year average of $352.6 million.

The property occupies a prime slice of Redfern real estate.

The sale came on a tight 5% yield.

“The investment offered diversified income streams with significant scope for value-add and rental uplift thanks to the favourable B2 Local Centre planning controls,” McEvoy says.

Formerly known as the London Tavern, the building is home to well-known local businesses The Milk Bar by Cafe Ish, Hustle and Flow bar and Bannerama, a signage and digital printing specialist.

The 357sqm property, which has a hotel licence, also incorporates two levels of accommodation with 14 twin and single-bed rooms.

It is located 100m from Redfern train station.