The ALH Leased pub in Melbourne’s Bentleigh East sold to a private investor for $33m by JLL
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The ALH Leased pub in Melbourne’s Bentleigh East sold to a private investor for $33m by JLL
The freehold interest in the ALH leased Boundary Hotel sold by JLL Retail Investments. The transaction was negotiated by JLL Stuart Taylor MingXuan Li Tom Noonan and Will Connolly.
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JLL HotelsThe freehold interest in the ALH leased Boundary Hotel sold by JLL Retail Investments. The transaction was negotiated by JLL Stuart Taylor MingXuan Li Tom Noonan and Will Connolly. -
JLL HotelsThe freehold interest in the ALH leased Boundary Hotel sold by JLL Retail Investments. The transaction was negotiated by JLL Stuart Taylor MingXuan Li Tom Noonan and Will Connolly. -
JLL HotelsThe freehold interest in the ALH leased Boundary Hotel sold by JLL Retail Investments. The transaction was negotiated by JLL Stuart Taylor MingXuan Li Tom Noonan and Will Connolly.
The freehold interest in the ALH leased Boundary Hotel sold by JLL Retail Investments. The transaction was negotiated by JLL Stuart Taylor MingXuan Li Tom Noonan and Will Connolly.
The asset is situated on the high-profile corner of Centre Road and East Boundary Road in the heart of Bentleigh East, approximately 14km from the Melbourne CBD.
The property featured a long-term lease to ALH, part of Endeavour Group (soon to be demerged from Woolworths Group), with initial expiry in 2028 plus 4 x 10-year options. The asset occupies a strategic 4,916sqm site with a favourable Commercial 1 zoning over the majority of the property.
The transaction was negotiated by JLL’s Stuart Taylor, MingXuan Li, Tom Noonan and Will Connolly. The property was acquired by a private investor for $33,000,000 reflecting an initial yield of 4.23% and a land rate of $6,712/sqm.
Stuart Taylor, Senior Director of Retail Investments at JLL said “The asset was offered to market by public Tender, with bids submitted on the eve of Melbourne’s latest lockdown. The extremely strong result achieved highlights investors continued confidence in the commercial real estate sector.”
“The asset offered investors a secure income stream, underpinned by the largest integrated liquor and hospitality business in the country, whilst supported by a highly strategic landholding.”
“Investor sentiment for long lease assets has never been stronger, fueled by a positive interest rate environment and flight to quality” Taylor added.
MingXuan Li, Head of Asian Markets, commented that “the asset attracted significant interest from offshore capital, driven by the land size and long-term redevelopment potential.”
“Asian buyers are looking at this type of asset as long-term land banking opportunities with strong holding income.”
Mr Taylor concluded that “the sale price reflects over a 30% premium to most recent book valuation of the property, highlighting the weight of demand for well leased property in the current market.”
The sale of the Boundary Hotel followed the recent sale by JLL of the Reef Hotel in Noosa to Universal Store founder Greg Josephson for $13.6m.
To request a sales analysis please email either of the selling agents via the below contact forms.
