Zagame family to sell famed Melbourne hotels
The Zagame family of Melbourne has listed a portfolio of six hotels in Melbourne and Vanuatu with price expectations of more than $300 million.
The properties include suburban gaming hotels across Melbourne and regional Victoria, while the owners have also relisted the Grand Hotel and Casino in Vanuatu’s Port Vila, which hit the market a year ago with a price tag of $25 million.
The assets are offered individually, in one line or in any combination through CBRE and Cropley Commercial and could offer future mixed-use development options.
Commercial Insights: Subscribe to receive the latest news and updates
The selldown comes as some generational asset owners have been taking the opportunity to crystallise gains as prices for commercial assets soar.
Last year the Schwartz family sold a hotel and historic pub while the Myer family offloaded a St Kilda Road office building. On a much larger scale the Lowy family have backed a takeover bid for Westfield by Unibail-Rodamco.
The Zagame family offerings include five freehold hotels with combined revenues above $94 million and 490 gaming machine entitlements — Zagame’s Reservoir Hotel, Zagame’s Caulfield Club, Zagame’s Boronia Hotel, Zagame’s Ballarat Club and Zagame’s Berwick Springs Hotel.
The 74-room four-star Grant Hotel and Casino in Vanuatu is on offer including a casino, VIP room and food and beverage facilities.
Zagame Corporation director Victor Zagame Jnr says the businesses on offer are well placed for growth.
“Our venues are exceptionally well presented, our staff are leaders in the industry, and our product is second to none,” Zagame says.
CBRE national director Mark Wizel paid tribute to family patriarch Victor Zagame, who died last year.
“Victor Zagame was an innovator and leader of the Australian hotel and hospitality industry with a product that immediately captured a loyal clientele,” Wizel says.
This article originally appeared on www.theaustralian.com.au/property.