Frank interest in St Kilda’s iconic Village Belle Hotel for sale by JLL

Melbourne’s pub investment market continues to intensify with the sale of the freehold interest in St Kilda’s iconic Village Belle Hotel, which bills itself as one of the hotel investment deals the most anticipated of recent years.

‘La Belle’ is being offered exclusively for sale via JLL’s Will Connolly, Stuart Taylor, Tom Noonan and MingXuan Li via an international campaign of “Expressions of Interest”.

Located in the heart of St Kilda’s famous shopping and dining district, the Village Belle Hotel is undoubtedly one of Australia’s most spectacular locations. After undergoing a major renovation and restoration of over $ 15 million at the end of 2017, the property is now a true local landmark. Frank interest is offered for sale subject to a long term lease to one of Australia’s largest pub operators,

Australian Venue Co, which recently acquired the leasehold business, which was negotiated by JLL Hotels.

Commanding a large 1,308m² corner site with favorable Commercial 1 zoning, the property offers investors net annual income of $ 1,458,339, annual rental growth as well as the added security of an initial term of 10 years, followed by four more 10-year terms. options of the year. The electrifying offering also includes an adjoining apartment complex located at the rear of the hotel, offering 12 almost new residential apartments, rented separately, built in 2017 as part of the property’s redevelopment and renovation.

JLL Hotels Vice-President, Will Connolly, anticipates Village Belle as one of the most discussed and sought after opportunities of the year, commenting “All the classic real estate terms come to mind when considering Village Belle, it will be a a true trophy for the most part, given its incredible location and immaculate condition, while proving to be a generational asset for those lucky enough to acquire it, as evidenced by the fact that this sensational property is being offered for the first time. times for over 20 years.

“These factors add to the significant advantage of inheriting one of the country’s largest engagements with Australian Venue Co, and we expect this incredible hotel to be the real ‘belle’ of the market among investors. “.

Village Belle is coming to market amid an unprecedented wave of hotel investment transactions in 2021 not only in Victoria in recent weeks, but across the country, including:

(Price & Yield)

• Boundary Hotel, East Bentleigh VIC $ 33m 4.23%
• Edwardes Lake Hotel, VIC Reservoir $ 28 million 5.00%
• Tudor Inn, Cheltenham VIC $ 15.66 million 3.79%
• Royal Exchange Hotel, Toowong QLD $ 14.05 million 4.01%
• Hotel Boronia, Boronia VIC $ 24m 5.00%
• Tavern Pelican Waters, Caloundra QLD $ 10.8 million 4.01%

Stuart Taylor, Senior Director, JLL Retail Investments, concluded that, given that three of the last four sales of Victorian hotel investments were new entrants to the market, this clearly indicates that this sector is now firmly on the radar of traditional commercial real estate investors. “We expect this trend of squeezing yields and new sources of capital to continue as investors increasingly realize that these hotel assets offer strong tenant commitments, owner-friendly leases and an attractive underlying property value.

“The demand for WALE long assets has never been greater, and the exposure to the core capital of this asset class is only just beginning.”

The Freehold Interest in the Hotel Village Belle is available through international Expressions of Interest ending Thursday, November 25 at 5 p.m.

To request a copy of the Information Memorandum, please contact one of the Exclusive Marketing Agents, Will Connolly of JLL, Stuart Taylor, Tom Noonan and MingXuan Li via the contact details below..

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