The freehold interest of St Kilda’s The Saint has come to market, leased to The Saint Brewing with strong opportunities in the bayside precinct.
The handsome two-storey sandstone and steel hotel occupies a 496sqm block on Fitzroy Street St Kilda just blocks from the beach, and surrounded by ongoing development and market interest, including Sand Hill Road’s big-budget reinvention of The Espy.
It holds 430-pax, is licensed until 3am and is zoned Commercial 1, potentially allowing (STCA) for a structure up to 16.5 metres’ tall.
The building is leased to The Saint Brewing Co on an initial five years, with three further five-year options. Current annual rental is $500k +GST, with four per cent annual increase after the second year.
Furthermore, the lease allows for vertical development by the freeholder even during the operation of the business.
There is also existing approval for rooftop signage, slated to add another $80k to annual rental income.
Private owners have engaged Colliers International’s Guy Wells, Ted Dwyer and Rob Joyes to market the asset, in the limelight of the very prominent rejuvenation of the nearby Gatwick Hotel.
“The growth in high end residential developments in the surrounding area, and premium retail along with the Pride Centre and the ongoing investment of the Block TV series in the local area reflects the growing appetite for St Kilda property,” observes Wells.
“The surrounding area is undergoing a renaissance of sorts after the recent closure of a number of properties that were operating as boarding or halfway houses, including the much publicised Gatwick Hotel.”
The Saint Hotel is being sold via Expressions of Interest, closing Thursday, 23 August.