Melbourne’s oldest licensed pub, the Duke of Wellington, has been sold along with the Adina Hotel for a combined $92m.
The properties were purchased by separate buyers and the deals mark the end of a 40-year era for the Melbourne landmarks after they were developed by the late Andor Schwartz and have been held by the same family for 40 years.
The properties were offered via an Expressions of Interest campaign run in September and October by CBRE Melbourne Middle Markets’ Josh Rutman, Mark Wizel, Lewis Tong and Kiran Pillai, in partnership with CBRE Hotels’ Rob Cross and Scott Callow.
The heritage listed Duke of Wellington pub and office building, sold for a record yield of 4.03 per cent to a private family, with Charter Keck Cramer acting on their behalf. The Adina, which comprises a 65-room hotel, was purchased by a major investor, who outbid a number of Asian-based hoteliers and interstate investors. The $53.5m sale price reflected a yield of 3.45 per cent.
Morry Schwartz, spokesman for the family that sold the properties, said: “We were absolutely delighted with the final result achieved on both properties. There is clearly a window for generational property owners to consider offloading their assets whilst the market is showing some very strong signs.”
The campaign generated widespread buyer interest, with more than 35 separate bids received on both properties – including groups from Vietnam, Malaysia, mainland China, Dubai, Taiwan and Hong Kong.
Rutman said the sale result highlighted the appeal of Melbourne as a major investment market.
“Melbourne has become a truly international city and this has seen a major uplift in investor demand for mixed use assets, particularly with hotel components that can take full advantage of the current tourism boom.
“In particular, Flinders Street and the surrounding southern and eastern parts of the Melbourne CBD, have matured to a point where both established investors and new entrants will compete to secure a piece of this established precinct.”
He added: “When existing owners of Melbourne CBD properties continue to pursue opportunities; this is a clear sign that there is still confidence in the growth prospects for the city’s commercial market.”