Popular Melbourne franchise pub Bridie O’Reilly’s has sold to a local developer in a prime location example of opportunity sales taking place in the capital cities.
Freehold owner John Connellan developed the business for the Bridie O’Reilly’s group nearly two decades ago, and recently put the property to market with development approval for a residential structure at the rear of the 1,100 m² corner block.
The auction took place onsite last Wednesday, with several interested parties bidding. While it did not secure a result, agreement was reached on a price of $6.03 million by Peregrine Projects immediately after the auction.
The figure represents a tight yield of 4.23 per cent, and Colliers’ Guy Wells said it is indicative of pub assets holding this kind of potential.
“The strong sale price reflects the current hunger for corner sites, in well-located positions, with holding income.
“This property had the added benefit of redevelopment potential and a demolition clause in the lease, which intensified the competition.”
Peregrine Projects cites plans to retain the popular corner pub, while also constructing up to five levels and 60 apartments on the block.
The property was marketed by Colliers International’s Guy Wells and Pat Connolly, in conjunction with Jonathon McCormack and Alex Ham of Gross Waddell.
