Junction Club, Moonee Ponds, near Moonee Valley Racecourse hits market
The Junction Club in Moonee Ponds has raced onto the market with a wide field of buyers expected to take an $18m punt on it.
A favourite with punters after a day at the nearby Moonee Valley Racecourse, the bistro, sports bar and gaming lounge has been run by the Moonee Valley Racing Club since 2017.
The 740 Mt Alexander Road property sold for $10.7m in 2014 to a private investor who is unsaddling the property to pursue other investments, with industry sources tipping an $18m purse.
But the next owner could give it an upgrade, with selling agents at JLL noting developers were attracted to the scope for an up to 26m height at the address that could have it soar eight or nine storeys high.
JLL investment sales vice president Will Connolly said an extra 4000 new residents expected to move into the $2bn Moonee Valley park redevelopment over the road in the coming years would be of note for prospective buyers.
But most of the interest so far seemed to be backing the club’s gaming machines to keep the rent paid.
“It’s got 80 gaming machines in there, which are trading exceptionally,” Mr Connolly said.
“And thankfully there haven’t been any concerns about COVID-19 from the market.”
Currently leased to the Moonee Valley Racing Club for another six years, it is expected to attract local and international investors and developers.
Mr Connolly added that with the Boundary Hotel in Bentleigh expected to sell for around the “mid to high 20s (million)” mark when its sales campaign closes next week, interest in securely leased hotels was high.
Expressions of interest for the Junction Club close at 4pm, June 17.