The operator of the famed Lucky Coq Hotel has purchased its Chapel Street, Melbourne, freehold for approximately $7 million.
Having occupied the site on the corner of Chapel Street and High Street for more than a decade, Colonial Leisure Group bought the asset in a transaction reflecting a site rate of roughly $20,000/sqm.
The freehold interest changes hands for the first time in just over 50 years, having been owned by a Melbourne-based family.
Lucky Coq is famous around Melbourne for its pizzas and pints, and the site at 179 Chapel Street – the intersection of Windsor and Prahran – has a rich history as a late-night hotspot.
CBRE’s Mathew George and Scott Callow managed the sale campaign.
“Chapel Street is part of Melbourne’s fabric and Lucky Coq is one of its most-loved venues,” George said.
“The sale price represents an impressive site rate, but still provides massive upside for the buyer given the potential to further develop the building and scope for rental growth in the future.”
Callow added: “The hotel sector remains in vogue, with investors driven by limited high-quality opportunities, low interest rates and thriving pubs businesses underpinning the rentals.”