Last drinks for Burnett family as Newtown pub sells
Peter Burnett pulling his one of his last pots at Lord of the Isles. Picture: Alison Wynd
The family of legendary hotelier Peter Burnett has ended a 45-year association with a famous Geelong pub.
The Burnett family has sold its freehold interest in Newtown’s St Lords hotel for $12.35m after a national expressions of interest campaign managed by JLL Hotels senior vice president Will Connolly.
The sale marks the final chapter for the Burnett family in the West Fyans St local, which they operated as the Lord of the Isles Tavern.
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The pub, which is walking distance to the Geelong Cats’ home base at GMHBA Stadium, was well-known as host of many a Cats Mad Monday celebration in its time as Lord of the Isles.
Mr Burnett, who died in 2019 a month after retiring from operating the hotel, was a longstanding national president of the Australian Hotels Association and a former director of Tourism Australia and was farewelled with a state funeral.
The property offers the Melbourne private investor an extensively refurbished asset – undertaken by leaseholder Black Rhino Group – leaving minimal future capital expenditure requirements.
The freehold interest of St Lords Hotel in Newtown has been sold by the Burnett family after 45 years.
Black Rhino Group is one of Australia’s largest privately-held hotel operators.
Extensive facilities include a large family bistro, multiple function rooms, a sports bar and going lounge with 60 pokies machines.
The property has a 3542sq m landholding, including an on-site car park.
The freehold is tied to a 20-year lease expiring in 2039, delivering a net passing income of about $800,000, with fixed 3 per cent annual increases and further options that extend the total lease term to 70 years.
Mr Connolly said the property attracted multiple offers through the expressions of interest campaign, with buyers attracted to the strong income stream from its long-term lease.
“The St Lords Hotel embodied the highly sought-after investment attributes that have driven significant capital flows into the pub investment sector – a nationally recognised covenant, long-term tenure, and annuity-style income,” Mr Connolly said.
The pub drives an $800,000 a year passing rental income.
“These characteristics attracted diverse buyer interest throughout the campaign.
“With the successful purchaser, a Melbourne-based retail investor, valuing the asset comparable to traditional retail investments due to its secure income profile.”
St Lords is walking distance to Geelong Cats home base at GMHBA Stadium and Newtown’s river end shopping strip in Pakington St.
The sale of the St Lords Hotel continues a significant run of recent sales of some of Victoria’s more iconic pub assets, with the sale of Bells Hotel, South Melbourne for $20m and The Napier Hotel, Fitzroy for $10m, both announced in August.
The freehold to the Bellarine Peninsula’s former Queenscliff Brewhouse also sold in a circa-$6m deal after a new 10-year lease to major hospitality player Australian Venue Co attracted private Victorian buyers.
