A rare opportunity has come to the Victorian market, with sale by the Inge Group of the freehold and business interest of popular Melbourne city-fringe pub the Flying Duck.
Located on Bendigo Street in Prahran, the two-level Duck sits on a generous 768sqm lot surrounded by high-density residential.
It features public bar, a large beer garden and stunning atrium, and office space and a manager’s residence upstairs, but no gaming.
The corner site also holds potential for function areas on the first floor and activation of a rooftop space (STCA), which would provide views of the CBD.
Inge Group is held by a private family, who have owned the Duck since 2014. They count a diversified portfolio, and are reportedly selling the pub as it is “non-core”.
Freehold going concerns do not often hit the tightly held Victorian market, and it has been years since a comparable asset has been put to an open offering.
Sale price north of $7.5 million is anticipated.
“The Duck has been run under management for a long time and provides a great opportunity for an owner-operator, group or investor to secure one of Melbourne’s most attractive beer gardens and hotel,” notes CBRE Hotel’s Mathew George, marketing the pub with colleague Scott Callow.
“Over recent years we have seen a significant consolidation of the long-established inner Melbourne and CBD pub market. The dominance of major hotel operating groups has limited opportunities for many private buyers and enhanced hotels as a legitimate investment sector.”
The Flying Duck is being sold via Expressions of Interest, closing Thursday, 9 December.
CBRE Hotels is also spruiking the freehold interest in the Kalkallo Hotel and surrounding land, on a total 18,400sqm.
The Hotel includes a bottleshop, several bars, beer garden, bistro, function room and upstairs accommodation, with a valuable 3am liquor license.
With the carpark, it generates $149k in annual rental income, and two residential dwellings provide combined annual income of almost $20k.
The Hotel is seen as a short-term hold investment, with an immediate development play on surrounding vacant land, which is zoned suited to the likes of hotel, food & beverage, accommodation, leisure & recreation, residential, medical, aged care and more, subject to the relevant planning approvals.
Kalkallo is considered a growth corridor, 30 kilometres north of the Melbourne CBD and 15 mins from Melbourne International Airport, anticipating over 300,000 residents in the vicinity in the next decade.
A private family have owned the property for over 50 years, and CBRE is acting on behalf of three siblings, after the recent passing of their parents.
The hotel business has been with a different private family for over 20 years, who still hold lease options over the pub and adjoining carpark though to 2031.
The investment property is being marketed by CBRE’s Mathew George and Daniel Eramo, looking to offers north of $7 million.
“The hotel has the potential to be a highly lucrative destination venue, servicing the hundreds of thousands of residents moving into the newly-formed neighbouring estates,” suggests George.
“Barriers to entry have proven too high in the past to build large scale food and beverage venues without gaming … this one is primed to be in the right spot when the time is right for servicing the thousands of local residents and employees rapidly descending on the area.”
