Brighton's Marine Hotel bought by Chinese investor for $15.8 million

Brighton's Marine Hotel bought by Chinese investor for $15.8 million
Brighton's Marine Hotel bought by Chinese investor for $15.8 million

A bayside Melbourne hotel has been snapped up by a Chinese investor for $15.8 million on a tight of yield of 3.3 percent.

It was its second sale in recent times.

Brighton's Marine Hotel at 199-217 New Street was bought a year ago by BRW Rich Lister Giuseppe "Joe" Catalfamo from another well-known property family, the Zagames, for $13 million, according to titles records, The Australian Financial Review noted.

The present transaction translates to a 21.5 per cent capital return for Catalfamo, a former meat industry veteran. Catalfamo was 190th on the BRW list with a wealth of $373 million.

The Brighton hotel stands on a prominent corner and is set on an expansive 4,670 sqm land holding.

The leased hotel had a current net income of $533,540 pa. It has a five-year net lease ending next year, with 25 years of further options. There are fixed annual increases of 3 percent.

It is close to the bustling Church Street shopping precinct and Brighton Yacht Club.

The Chinese private investor is understood to have paid in cash, and the deal pips another recent pub deal in bayside Albert Park, according to the AFR. 

The Beach Hotel was sold for $17.1 million on a 4.1 percent yield to an offshore Chinese purchaser

CBRE brokered the Marine Hotel deal along with Enzo Raimondo's Joseph Carbone and Frank Vinci.

In April, another Chinese investor paid bought the Arena Shopping Centre in Melbourne’s south-east suburb of Officer for $48 million. That deal was also brokered by CBRE.

The recent deals highlight the strength in investment appetite for well-located assets backed by strong tenancy profiles.

The centre generates an annual income of $2.65 million per annum and the initial yield works out at 5.38 percent.

Tags: 
Melbourne Hotel Sale

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