CHAAYA’S SALE AND LEASEBACK OF THE BAY HOTEL

In On the Market by Clyde Mooney

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Melbourne publican Andre Chaaya is cashing in the title to his popular Bay Hotel, so he can take it to another level.

Chaaya has owned the operation at the Bay in Mordialloc in south-east Melbourne since 2013, and two years ago secured title to the bricks and mortar as well.

The pub occupies a prime corner site of 646sqm on Beach Road, directly opposite Mordialloc Beach, with views across Port Phillip Bay, a 1am licence and mixed-use zoning.

It incorporates a large public bar and dining room, modern beer garden, and upstairs function room, which have seen regular refurbishment.

The area has been undergoing significant transformation in recent years, with the opening of assorted new bars, restaurants and cafes.

Chaaya also owns and operates the leasehold business of the Graham Hotel, in Port Melbourne, half an hour away, and is looking to divest the Bay freehold and unlock capital to execute a large-scale renovation on the Mordialloc pub.

He stands to join the ranks of the sale-and-leaseback, offering a long-term lease to himself as operator, providing net annual rental income on the property of $330k (plus GST).

The publican has engaged CBRE Hotels’ Scott Callow and Will Connolly, with interest expected from hospitality investors and land-bankers.

“The Bay Hotel is a truly premier asset, given its prime Beach Road position and in an extremely sought-after area of Melbourne,” offers Connolly. “This is a chance for investors to secure a prime piece of Beach Road real estate overlooking Port Phillip Bay.”

The Bay Hotel freehold is to be sold via public auction, onsite, Friday 29 June at midday (AEST).