Melbourne’s oldest pub hits the market

Melbourne’s Duke of Wellington hotel has been sold, along with the building behind it.

Property developer and publisher Morry Schwartz is selling the oldest pub in Melbourne, the Duke of Wellington, and a nine-level ­office tower on the same block with price expectations of about $30 million.

The Schwartz family is also selling the 65-room Adina Hotel at 88 Flinders St, which is tipped to fetch about $50 million. The hotel is leased to Toga Far East Hotels until 2021.

The pub is leased to Dixon Hospitality and the office tower’s tenants include technology and design companies.

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The properties will be offered together or separately by CBRE Melbourne Middle Markets agents Josh Rutman, Mark Wizel, Lewis Tong and Kiran Pillai and CBRE Hotels agents Rob Cross and Scott Callow.

“Melbourne has become a truly international city and this has seen a major uplift in investor demand for mixed-use assets, particularly with hotel components which can take full advantage of the current tourism boom,” Rutman says.

Adina hotel Melbourne

The Adina hotel in Melbourne’s CBD.

The offerings come amid keen interest in the area, with a car park and office at 114 Flinders Street selling on a yield of about 5% and a price of about $120 million to Hong Kong investment group HK Realway.

Meanwhile, two big retail centres have come to the market.

One centre in Dandenong South, in outer southeastern Melbourne, is tipped to sell for more than $30 million, and is fully leased with a 4.5-year weighted average lease expiry.

Another for sale in South Nowra on the NSW south coast is leased to national and government tenants with a weighted average lease expiry of 4.7 years.

Agents are CBRE’s Justin Dowers, Nick Willis and Kevin Tong and Stonebridge’s Philip Gartland and William Blanch.

“The fact that these centres maintain full occupancy underwrites the interest from high-­profile retailers to have exposure in this style of asset, in these locations,” Dowers says.

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