The freehold interest in the AVC-operated Village Belle in Melbourne’s St Kilda has been bought by well-known pub owner Mazen Tabet for $31 million.
The pub was given a $15 million renovation and restoration in late 2017 by its owner operator of 20 years and has a net annual income of around $1.45m.
The Village Belle is situated in St Kilda’s retail and dining precinct and occupies a 1,308sqm corner site with commercial 1 zoning. The lease has a 10-year initial term, and four further 10-year options.
“The Village Belle certainly compliments our current portfolio, with it’s excellent presentation and strength of tenancy,” said Tabet, whose portfolio also includes the Mornington Peninsula’s Portsea Hotel.
The sale includes an adjoining apartment complex located at the rear of the hotel comprising 12 separately leased residential apartments that were built in 2017 as part of the redevelopment.
The $31 million transaction represents a yield of around 4.65 per cent according to JLL’s Will Connolly, Stuart Taylor, Tom Noonan and MingXuan Li, who managed the international EOI campaign and also the sale of the pub’s leasehold to AVC earlier this year.
“As expected, the Village Belle proved to be one of the most hotly contested offerings for 2021, not just within the hotel investment space, but also the retail sector,” JLL Hotels vice president Will Connolly said.