The freehold interest of The St Lords Hotel, Geelong has sold, with a sale price of $12.35m.
The divestment marks the final chapter in 45 years of ownership for Geelong hospitality icons the Burnett family. The transaction was exclusively handled by JLL’s Will Connolly via a national Expressions Of Interest campaign.
The investment offered exceptional security through a 20-year initial lease term expiring in 2039, with fixed 3 per cent annual increases ensuring definitive income growth. Further options combine for a significant total lease tenure of 70 years.
“The St Lords Hotel embodied the highly sought-after investment attributes that have driven significant capital flows into the pub investment sector – a nationally recognised covenant, long-term tenure, and annuity-style income,” stated Connolly.
“These characteristics attracted diverse buyer interest throughout the campaign. With the successful purchaser, a Melbourne-based retail investor, valuing the asset comparable to traditional retail investments due to its secure income profile.”
The multi-faceted venue features comprehensive hospitality and gaming facilities including a large family bistro, sports bar, gaming lounge with 60 electronic gaming machines, and extensive parking facilities.
The sale of the St Lords Hotel continues a significant run of recent sales of some of Victoria’s more iconic pub assets, with the sale of Bells Hotel, South Melbourne for $20m and The Napier Hotel, Fitzroy for $10m, both announced by JLL in August.