A Chinese investor is the new owner of the 406sqm, two-level freehold building at 139 Cecil Street, securing the property at a sharp yield of 4.86 per cent.

Savills Australia’s Nick Peden, Clinton Baxter, Jesse Radisich and Glenn Ye brokered the deal, saying more than 125 registered buyers made enquiries throughout the expressions-of-interest campaign.

“The sale of The George Hotel is a clear reflection of the hot demand for blue-chip investments within Melbourne’s most premium suburbs,” Mr Peden said.

“This result is evidence that buyers are flocking to A-grade commercial properties and are willing to accept tight yields due to the scarcity of opportunities and the long-term growth.”

Mr Baxter said Savills Asian Services found the buyer for the property. “This highlights our capability within the market to reach a broader worldwide market, creating greater completion and ultimately achieving record prices.”

The George Hotel has been operating for more than 150 years and signed on for a further five years in January this year, plus renewal options, generating a total net rental amount of $253,146 per annum.

Mr Radisich said the buyer was drawn to the building’s strong income return, future upside potential and five-star South Melbourne location.

“With a Commercial 1 zoning, there is scope for exceptional redevelopment, while the unbelievable location opposite the South Melbourne Market ensures The George Hotel is the ultimate long-term investment.”

To discuss the sale in further detail phone or email Nick Peden via the below contact details.

See also:

Royal Hotel Sunbury Melbourne pub sold 

The Lucky Coq Chapel Street Hotel Melbourne for sale

Melbourne Pullman Park Hotel sold to iProsperity Group