- The hotel was sold for $15.66M
- A national record for an asset tenanted by ALH
- Was sold unconditionally with a 90 day settlement period
The Tudor Inn Hotel in south-east Melbourne has been sold for $15.66 million – 32% above the book value for the asset.
This sale has set a new national record for an ALH Group-tenanted investment.
The Endeavour Group (formerly ALH) is a recently-listed spinoff of the Woolworths Group liquor division, which includes their portfolio of over 330 licenced venues across Australia as well as their Dan Murphys and BWS stores.
The sale was negotiated by CBRE’s Nathan Mufale, David Minty, Scott Hawthorne and JJ Heng.
Eight offers were generated during the on-market campaign with an unconditional sale and a 90-day settlement period.
The buyer was not disclosed.
The hotel, located at 1281 Nepean Highway, Cheltenham, was offered a seven-year lease, returning a net income of $592,855 per annum on a 3.79% yield.
It occupies a 4,789sqm landholding with 60 car spaces.
“To generate over $100 million in offers represents the increased weight of capital currently competing for blue-chip assets in Melbourne’s commercial property market,” said Mr Mufale.
“Large Activity Centre landholdings with income are highly sought after by buyers with long-term purchasing strategies.
“The sale of the Tudor Inn Hotel follows the divestment of several other ALH (Endeavour Group) tenanted properties this year, with this being the first to achieve a sub 4% yield.”
Nathan Mufale, CBRE