South Melbourne's iconic Water Rat Hotel listed

A South Melbourne icon, the Water Rat Hotel, is being offered for sale with offers due 2 November. 

Built in 1858, the popular venue located at 256 Moray Street was previously named Druids Hotel and also the Freemason’s Hotel.

The venue has a rich history, being the location of the 1973 murder of Painters and Docker Union secretary Pat Shannon. 

The 513 square metre venue underwent major renovations and opened as the Water Rat Hotel in 1991, where it was one of the first hotels in South Melbourne to introduce outdoor seating. 

The venue was expected to fetch a price in the high $3 million range.

It had no pokies.

Its present owner bought the hotel four years ago and the liquor licence is managed by a private company.

CBRE’s Justin Dowers, Will Connolly and Tim Last, conjunctionally with Burgess Rawson’s Terry Board and Nicholas Breheny, have been appointed to market the property. 

The Water Rat Hotel is being marketed as providing potential for investors, developers and future owner occupiers. 

Located on a 314 square metre site, the Water Rat Hotel is a two-storey venue comprising an outdoor seating area, rooftop terrace, two separate bar areas and function space on the first floor.

With frontages to Park and Moray streets, the property benefits from a position within walking distance to the Clarendon Street retail precinct. 

South Melbourne has the third highest rate per square metre for residential property in Melbourne, sitting closely behind Middle Park and Albert Park, with a rate per square metre of $10,809/square metre and a median house price of $1,700,000, CBRE says.