The freehold interest in Port Melbourne’s Cornerstone Hotel has sold, with the inner-city investment transacting at a market defying yield of 4.50%, further signifying the recent resurgence of activity in Melbourne’s pub market.

The transaction was exclusively conducted by JLL Hotel’s Senior Vice President, Will Connolly and Executive, Lachlan Persley.

On offer for the first time in 25 years, the property was transacted following a competitive, four-week ‘Expression of Interest’ campaign, with six compelling offers received upon campaign closure, proving yet again that fully leased investments in this sought-after asset class continue to defy market expectations.

The sale of the Cornerstone Hotel marks the second successive freehold pub sale conducted by JLL Hotels & Hospitality in the past four weeks, both at capitalisation rates below 5.00%, with the recent freehold sale of Hotel Collingwood transacting at an equally aggressive yield of 4.63% to prominent Melbourne hospitality operators Only Hospitality Group.

"Transactions such as these further exemplify that our market, at least from a local perspective, is beginning to ‘turn the corner’ on a challenging period”.

Will Connolly, Senior Vice President, JLL Hotels, comments that appetite and activity within the Melbourne pub market has begun to re-emerge; “It’s been evident to our team in recent weeks, that a renewed sense of vigour has begun to permeate throughout the metropolitan market.

More recently, a trio of inner-city pubs have come to market, with JLL Hotels currently offering East Brunswick’s ‘Quarry Hotel’, the recently refurbished ‘Hotel South Melbourne’ as well as the popular Carlton North venue, ‘The Kent Hotel’, which is available for the first time in 20 years.

Connolly also indicated that the freehold and business interests of two of Melbourne’s more significant food, beverage and gaming assets will soon be brought to the market via national 'Expression of Interest' campaigns, adding further fuel to the notion of a renaissance in Melbourne's pub market.

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