A group led by ex-CUB CEO Peter Filipovic has broken the Victorian gaming drought, buying a rare freehold going concern in the institutional Bells Hotel of South Melbourne.
Bells is a landmark pub on a commanding corner of the busy intersection of Moray and Coventry Streets, with more than 60 metres street frontage, laneway access, and total site area of 1,161sqm. It opened in 1874 as Freer’s Family Hotel. Sam Tresise and Commercial Hospitality Group bought it in 2013.
Featuring twelve distinct spaces, capped by an open-air ‘rooftop’ providing panoramic views of Melbourne’s skyline, Bells diverse range of experiences caters to an evolving demographic. As such it enjoys the benefits of a diverse revenue mix, counting high-volume food & bev and significant functions and events income, bolstered by the revered ‘Main Hall’, which hosts some of the city’s most exclusive corporate and sporting events, as well as a high-performing gaming operation with 40 machines.
Tresise presented the hotel to market in 2024 in what was anticipated to be one of the most contested sales of the year for the tightly held Victorian landscape.
It has now been acquired for circa $20 million by the Saxon Group, steered by Dave Shannon, Merv Shannon, and former head of Carlton & United Breweries, Peter Filipovic. Saxon already holds a collection of Melbourne venues, such as Richmond’s Royal Saxon, and Fitzroy’s Naked for Satan.
Filipovic revealed plans to renovate in the coming years toward something a bit more contemporary, telling the AFR it “needs a bit more love and attention”.
Melbourne freehold sales remain the exception to the norm, and the EOI campaign was reportedly widely contested, finding interest from both local and national operators.
Sale of the gaming-based operation is seen as a “significant milestone” signalling confidence returning in Victoria’s pub sector.
“The sale of Bells Hotel has finally broken an extended lull in gaming hotel transactions across the state,” says JLL Hotels’ Will Connolly, who brokered the deal.
“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.”
