The former Aboriginal leader Geoff Clark's almost costly beer - bid $1.25 million for a hotel in Warrnambool
The former Aboriginal leader Geoff Clark inadvertently bid at a commercial property auction on Friday.
It was for a Warrnambool pub, the iconic Cally.
But he meant just to order a beer at the 3pm Caledonian Hotel onsite auction which was conducted by the hotel broker T. J. Board and Ray White Warrnambool.
It was the fourth Warrnambool hotel on the market over the past year or so, following the listing of the Victoria Hotel, Gallery Nightclub and Shamrock Hotel.
When the Cally (pictured below) was initially listed last year there were $2 million price indications for the Fairy Street offering.
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The Victoria Hotel freehold reportedly sold for about $2.25 million, the Gallery for about the same, while the Shamrock was sold for development.
The auctioneer at Friday's auction for the Caledonian Hotel took a bid of $1.25 million from Geoff Clark after opening the auction with a vendor bid.
The auctioneer had jestingly suggested that if nobodywas going to bid, "we all may as well go inside for a beer". It was then that Mr Clark put his hand up.
Another attendee in the crowd put in a subsequent $1.3 million bid and the pub was knocked down to him.
Getting the required signature from the top bidder proved problematic so the broker Terry Board sought out Mr Clark to test his ongoing interest after the purchase fell through.
When the agents contacted Mr Clark to determine if he was still interested in the property, they discovered Mr Clark's bid had been recorded in error.
The Weekend Australian published concerns that the bankrupted Mr Clark could have been a bidder.
The family hotel, offering good food and beer with a TAB, was listed by Damian Gleeson who has been there two decades having initially bought the Cally in conjunction with Denis and Andrew O’Brien of Geelong and Bruce Wright of Warrnambool, rship until he took sole ownership a few years later.
Before the latest auction, Terry Board said there had been a number of interested parties who expressed an interest, but their offers were below expectations.
“We think it should bring at least $1.5 million,” he told the Warranbool Standard.
“It’s a prime bit of real estate in a central position still bringing in good money as a hotel.
“The residual value is in its potential. A future owner could look to build about 30 double-storey units at the rear.”