The Celtic Club has jumped at the opportunity to acquire the securely leased, prominently positioned Limerick Arms Hotel in South Melbourne for $5.3million.

The prominent three-storey corner hotel at 364-368 Clarendon Street was sold by Colliers’ Guy Wells, Oliver Hay and Tom Isaksson in conjunction with Cropley Commercial’s George Iliopulos on a short settlement.

“The Limerick Arms offered a securely leased investment with a quality tenant who has extensive operational experience in a variety of pubs having operated the Limerick for more than seven years,” Mr Wells said. “The tenant and the security offered by the lease agreement was a strong drawcard for the purchaser, the Celtic Club.”

The Limerick Arms Hotel, positioned on 347sqm at the corner of Clarendon and Park Streets in South Melbourne, is a prominent freehold hotel situated on the doorstep of the Melbourne CBD.

thumbnail-17.jpeg

The three-level hotel comprises a public bar and sports bar area, large outdoor seating area, main dining room and separate first level function room with outdoor deck area.  The hotel also provides accommodation rooms to the second floor and opportunities for capital improvement.

The prime location of the asset within the heart of the Clarendon Street retail precinct and its close proximity to the iconic South Melbourne Market, Albert Park, Royal Botanic Gardens and bayside suburbs were strong drawcards. 

Mr Wells said the Limerick Arms represented an outstanding investment proposition, providing an opportunity to acquire a corner position in a tightly held retail precinct with strong underlying income.

“Having sold their CBD asset in 2016, the Celtic Club has now been able to secure a strong investment return with a popular corner pub and successful business underpinning their returns,” he said. “The Club will look to work with the tenant and potentially make use of the function rooms and spaces to have meetings and events while looking for an additional multi-purpose site to replace their previous CBD venue and now-closed North Melbourne leasehold.”

thumbnail-19.jpeg

Welcoming the acquisition, Club President Prof. Patrick McGorry AO said:“A tremendous amount of work has been done to secure this investment on behalf of the Club, and the attractive rate of return from the freehold, alongside the opportunity to work with the operator on hosting some Club activities on site was attractive. At our recent Member Forum, we spoke about our multi-site strategy, underpinned by strong financial returns, and we hope that Members are encouraged by our getting on with the job.”

Club Treasurer, Carl Walsh FCA, added: “We are pleased to have been able to secure this asset with a yield of over 4% for the Club, which will underpin a return to surplus in our FY22 budget.” 

The Melbourne pub market has seen significant activity of late, with the sale of the Limerick Arms Hotel following hot on the heels of the nearby Montague Hotel which was also sold by Colliers and Cropley Commercial.

“Securely leased investments remain well sought after, with pub assets witnessing a sharpening of yields over the past 18 months,” Mr Wells said.  “A general scarcity of inner city food and beverage pubs has seen these assets generate strong interest throughout campaigns and among a deep pool of buyers.

“Of the inner city food and beverage pubs to be marketed in 2021, all have been transacted on yields of sub 4.5% and with short settlement terms reflecting the availability and willingness of purchasers to deploy capital."

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact form below.

Similar to this: 

4 Star Rydges Hotel Bankstown for sale by Colliers