The sassy Bouzy Rouge has been listed for sale by long-time hoteliers David and Angela Carey, marking a rare Richmond opportunity.
Built 1870, the prominent two-storey Hotel previously known as the Dover Castle is on a corner of Bridge Road, on a 325sqm site zoned Commercial 1, less than four kilometres from the Melbourne CBD and surrounded by attractions.
Behind the Art Deco façade is a mix of spaces, offering front bar, inside and street-side dining, two function areas upstairs, and a covered beer garden, under a 1am general licence.
The property is currently leased, with three years remaining plus an option for another two years, drawing annual rental income of just over $180k. This presents opportunity for an operator to take over by 2028.
The tenants are Jose and Sandra De Oliveira, who took the reins nearly 20 years ago and transformed the pub into the Bouzy Rouge.
Richmond is a vibrant suburb with a mix of prized commercial, retail and residential property, and rarely does a freehold pub become available. The most recent was the Cherry Tree Hotel, which sold for $7.56 million with a short lease in place, representing yield of 2.43 per cent.
One of Australia’s largest operators, AVC, greatly increased its footprint of Richmond pubs last year with acquisition of the Sandhill Road venues.
The appetite for comparable properties, particularly in the fringe of Melbourne, is unabated, and the Bouzy Rouge is expected to sell for north of $4.25 million.
Sale of the property is being conducted by CBRE Hotel’s Mathew George and Scott Callow along with Teska Carson’s Matthew Feld and Luke Bisset. Agents anticipate high levels of interest in the wake of strong activity in the pub sector.
“This property might suit an owner-operator, likely someone from the hospitality sector who’s willing to collect rent for the short term and then pick up a prized freehold pub,” suggests George.
“Richmond is the one suburb in town where every publican wants a pub, but they’re hard to find.”
The freehold interest of the Bouzy Rouge is being sold through an Expressions of Interest campaign, closing Tuesday, 23 May.
