Beach Hotel, Albert Park sold to Chinese buyer

The Beach Hotel in Albert Park has been sold to mainland Chinese investors for about $18 million.

The two-level, 1880s-built pub on the corner of Beaconsfield Parade and Victoria Avenue, overlooking Albert Park Beach, was sold by business interests associated with well known hotel broker Terry Board of TJ Board & Sons.

The deal to buy the Beach Hotel, along with the neighbouring Foodworks supermarket, was struck on a yield of about 4.2 percent.

The pub and supermarket bring in annual rent of about $758,000 with both on long leases, according to The Australian Financial Review.

The Beach Hotel sold with a seven-year lease to McKinnon Hotels, while the Foodworks sold with a 10-year lease to the supermarket operator.

But the AFR noted the property sold with a redevelopment clause, allowing the new owners to terminate the leases at short notice.

Current height limits would allow an apartment development of between three and five storeys.

The Beach Hotel offers function rooms, a courtyard bistro, 12 guest rooms on the upper floor and 32 poker machines.

The sale of the pub was negotiated by CBRE Hotels.

Another landmark Melbourne pub, St Kilda's Prince of Wales Hotel, sold for just under $45 million to a mainland Chinese investor in 2015.