South Melbourne institution fetches $5.2 million

12 September 2018

The iconic George Hotel in South Melbourne has sold for $5.2 million, highlighting the ongoing demand for prominent investment opportunities in city-fringe locations.

A Chinese investor is the new owner of the 406sq m, two-level freehold building at 139 Cecil Street, securing the property at a sharp yield of 4.86 percent.

Savills Australia’s Nick Peden, Clinton Baxter, Jesse Radisich and Glenn Ye brokered the deal, saying more than 125 registered buyers made enquiries throughout the expressions-of-interest campaign.

“The sale of The George Hotel is a clear reflection of the hot demand for blue-chip investments within Melbourne’s most premium suburbs,” Mr Peden said.

“This result is evidence that buyers are flocking to A Grade commercial properties and are willing to accept tight yields due to the scarcity of opportunities and the long-term growth.”

Mr Baxter said Savills Asian Services found the buyer for the property.

“This highlights our capability within the market to reach a broader worldwide market, creating greater completion and ultimately achieving record prices.”

The George Hotel has been operating for more than 150 years and signed on for a further five years in January this year, plus renewal options, generating a total net rental amount of $253,146 per annum.

Mr Radisich said the buyer was drawn to the building’s strong income return, future upside potential and five-star South Melbourne location.

“With a Commercial 1 zoning, there is scope for exceptional redevelopment, while the unbelievable location opposite the South Melbourne Market ensures The George Hotel is the ultimate long-term investment.”

Click here for more information on Savills City Sales.

 
 

Key Contacts

Nick Peden

Nick Peden

Director
CBD and Metropolitan Sales

Savills Melbourne (150 Collins Street)

+61 (0) 3 8686 8011

 

Clinton Baxter

Clinton Baxter

State Director - VIC
CBD and Metropolitan Sales

Savills Melbourne (150 Collins Street)

+61 (0) 3 8686 8021