Rolling lockdowns in Victoria haven’t deterred a private investor from purchasing the freehold interest of the Customs House Hotel in Williamstown for $5.85 million.
Having transacted with an existing lease to an experienced hotel operator, the sale represents a yield of 3.84% based on the net annual income of $225,000.
The pub and restaurant venue occupies a 1,100sqm site at 161 Nelson Place and had been under the same ownership for more than two decades.
Overlooking Hobson’s Bay, the tightly-held Nelson Place retail strip is opposite Commonwealth Reserve and the Royal Yacht Club of Victoria within Williamstown, south west of Melbourne.
CBRE’s Scott Callow, David Minty and JJ Heng, in conjunction with James Gregson of Gregson Commercial, managed the sale campaign.
“The demand for well-located hotel investments has never been stronger, and we’re seeing record yields in the current market,” Callow said.
Customs House Hotel sits within a heritage precinct, is one of Williamstown’s largest function venues and also offers access to the rear of the property via a laneway.
“The 1100sqm site appealed to many buyers given the potential for future development at the back of the block,” Minty added.
The sale of the Customs House Hotel follows the recent transaction of the Tudor Inn in Cheltenham, which delivered a record yield of 3.79%.