The freehold of historic South Melbourne pub the Bells Hotel has been sold for $20 million.
Sparking interest among local and national pub operators, the Bells Hotel was presented to the market via a public expression of interest campaign. The freehold was purchased by The Saxon Group, led by former CUB CEO Peter Filipovic, and brothers David and Merv Shannon.
Having undergone a major transformation at the hands of long-term owner Sam Tresise, the hotel boasts diverse revenue streams across food and beverage, gaming, and events income generated through the venue’s Main Hall which hosts corporate and sporting events.
Situated in a prime corner position on Moray and Coventry Streets, the hotel has a total site area of 1,161sqm and dual street frontage of more than 60 metres. The pub features twelve distinct spaces, including an open-air rooftop with panoramic views of Melbourne’s skyline, and includes 40 electronic gaming machine entitlements.
The transaction was handled by Will Connolly, senior vice president – investment sales at JLL Hotels & Hospitality Group, who describes the sale as a significant milestone for Victoria’s pub market.
“The sale of Bells Hotel has finally broken an extended lull in gaming hotel transactions across the state. Buoyed by the significant level of interest the property attracted within the sale campaign, a landmark transaction such as this demonstrates the enduring appeal of this asset class, despite challenging local market conditions.
“We’re delighted to have facilitated this important transaction, which signals yet another example of confidence returning in Victoria’s pub sector and wish to congratulate The Saxon Group on their latest acquisition,” Connolly stated.