CBRE Manager Will Connolly sold the property at 355 Park Street, South Melbourne offmarket on behalf of the Fermanis family. The hotel is underpinned by an 18-year lease, with further five-year options, to its operator.

Vendor Noel Fermanis said: “While our family and I weren’t actively seeking to sell the property, the offer presented to us was simply too attractive to ignore and in the end we believe we achieved an incredible result, while the purchaser also secured an asset they had a huge desire for.”

Mr Connolly noted the sharp yield achieved represents the incredible demand within the hotel market for securely leased pub assets.

“The sale of The Montague Hotel is a perfect example of our market’s appetite for secure investment pub assets. With a well-regarded tenant and in excellent condition, this kind of opportunity is highly sought after as highlighted by the speed at which buyers secure hotels on and off-market,” Mr Connolly said.

The property is situated on a prime 277 sqm corner block within a dense residential area.

It boasts double street frontage plus Neighbourhood Residential zoning, providing flexibility for future alternative use.

The Fermanis family is also currently marketing its renowned Abbotsford pub, The Retreat Hotel, which is for sale via auction on March 2 at 12:30pm. Click here to learn more about the Retreat Hotel Auction.

Click here to view Will Connolly's profile on The Hotel Conversation.

To discuss the sale in more detail contact Will Connolly via the below contact details.

See also:

The popular East Brunswick Hotel sold at auction for $4.4 million

Landmark Melbourne five star hotel for sale

International field vies for new Melbourne CBD hotel