Former Carlton & United Breweries (CUB) CEO Peter Filipovic has added to his pub empire with the purchase of South Melbourne’s Bells Hotel for $20 million.

Filipovic, who heads the Saxon Group alongside his partners Dave and Merv Shannon, said they were “very proud to be the new owners of this outstanding asset”.

Saxon Group already runs venues including the Royal Saxon in Richmond, Naked for Satan in Fitzroy, Brown Cow in Hampton and Sons of Mary in Brighton.

“It’s a big pub, and it really is a well-known pub in the heart of the community and supports a lot of local football clubs and great causes,” Filipovic told The Australian Financial Review. “We will renovate the pub. It just needs a bit more love and attention.

“We will definitely renovate over the next two to three years and make it a bit more contemporary.”

The venue is located at the intersection of Moray and Coventry Streets and includes a rooftop area with panoramic views of Melbourne’s skyline.

The sale was handled by JLL Hotels & Hospitality Group’s Will Connolly, who described the transaction as a “significant milestone in Victoria’s pub market”.

“The sale of Bells Hotel has finally broken an extended lull in gaming hotel transactions across the state,” he said. 

“Buoyed by the significant level of interest the property attracted within the sale campaign, a landmark transaction such as this demonstrates the enduring appeal of this asset class, despite challenging local market conditions.

“We’re delighted to have facilitated this important transaction, which signals yet another example of confidence returning in Victoria’s pub sector and wish to congratulate The Saxon Group on their latest acquisition.”