The George Hotel in South Melbourne sells to Chinese investor
Savills have sold The George Hotel in South Melbourne.
The corner property, located opposite the South Melbourne Market, was bought by a mainland Chinese investor.
The historic inner-city pub sold on a 4.86 per cent yield for $5.2 million.
It reflected a 30 per cent capital gain in less than three years for the Tresise family whose Commercial Hospitality Group will continue to operate it under a lease agreement, which has just over four years to run plus renewal options.
The George Hotel was marketed as "an outstanding investment opportunity with significant future development upside, strong income and a blue-chip position."
This two level freehold hotel recently came under a new 5+5+5+5 year lease that commenced this January with a current net rental of $253,146 per annum.
Having operated for over 150 years, The George Hotel is described as "a true South Melbourne institution"
The 406 sqm holding is zoned Commercial 1.
