The sale represents a major milestone for the inner metro Melbourne pub market. Reflecting the asset's "blue-chip" status and premium location; the transaction achieved a favourably sharp net investment yield of sub 4 per cent, aligning with initial market expectations.
Situated prominently at the corner of Station and Lee streets, the Brandon Hotel has earned the enviable reputation as one of Carlton’s favourite hotels. The prime commercial landholding highlights the sustained demand for character-filled hospitality assets located within affluent and established residential pockets.
The successful investment was particularly attractive due to its secure tenancy to an experienced food and beverage operator, the strong local following the popular business enjoys, and the premium outdoor seating area.
“When you can buy a very popular local pub situated on a substantial corner landholding, generating rental income with growth and the tenant paying outgoings for the price of a quality home in the area; it became a simple proposition for switched on buyers,” advised HTL Property’s Victorian Director, Scott Callow.
“Interest was generated both nationally and internationally by our specialist firm; with many interested parties recalling their fond connection with The Brandon whilst living in the area - many of whom were undertaking university study at the time,” added HTL Property’s Dan Ryan.
“Hence the concept of investing in a pub asset that separately offered a healthy dose of nostalgia, was a powerful lever that ultimately appealed to many interested parties,” concluded Mr Ryan.
