The landmark East Brunswick Hotel on Lygon Street has come to market, providing an opportunity seldom seen in Melbourne to acquire a freehold going concern.
The prominent three-storey corner pub resides on a 380sqm block less than 20 minutes from the Melbourne CBD, with over 60 metres of dual frontage. For decades it was operated by CUB.
It includes an expansive public bar, well-equipped commercial kitchen, private dining room and adjoining function and dining space known as the ‘Piano Bar’, as well as another private function room on the first floor.
Late 2017 Brunswick local Scott Didier bought the pub at auction for $4.4 million, when the previous tenant’s lease ended and the passive freehold owner opted to list it as a vacant, blank canvas.
Didier undertook a major renovation, reopening late August 2018 with a new look sporting industrial theming, including exposed metal beams and a bar made out of timber salvaged from Mornington Pier.
Marketing literature suggests the business, which might benefit from a fresh set of eyes, is poised to leverage its variety of revenue streams, particularly the 12 luxuriously appointed boutique accommodation rooms, with dedicated lift access, providing a mix of both hotel and studio-style options and said to be a “significant point of difference”.
Agents suggest the “high-grade existing infrastructure” leaves minimal capital expenditure requirements for an incoming operator.
The Hotel is zoned Commercial 1, with a valuable 1am ‘General’ hotel liquor licence. Its location – amongst several in-progress and completed residential developments – provides both day and night patronage.
Its mix of revenue drivers and multiple trading zones lead expert sources to offer price expectation of circa $6 million.
A sale campaign is being steered by JLL Hotel’s Will Connolly, in conjunction with Anthony Stevens of Anthony Stevens Real Estate.
Given the bulk of Melbourne’s pubs are separately owned titles and businesses, they see appeal for operators to have the ability to “control their destiny” with the freehold, and for investors open to partnering with publicans, but suggest the most likely buyer would be an existing operator looking to expand.
“The majority of F&B pubs within inner city suburbs are separately owned between leasehold and freehold interest,” explains Connolly. “Freehold pubs in these areas can often be held within private families for generations and rarely be made available to market.”
The East Brunswick FGC is being sold via Expressions of Interest, closing Thursday, 5 December.
