Stonebridge Property Group has completed the off-market sale of the Tudor Inn Hotel in Cheltenham for $11.5 million.
Located on Nepean Highway, the property occupies a 4,839 sqm site and comprises the Tudor Inn Hotel, a BWS retail liquor outlet and 60 rear car parks. The hotel includes gaming facilities and is leased to ALH Group, part of Endeavour Group, on a 25-year lease to November 2028, with further 10-year options extending to 2068.
The property was acquired by a private investor following a targeted off-market sales process conducted by Stonebridge.
The asset presented several investment considerations, including a relatively short WALE, an upcoming market rental review and partial heritage protections which limited future redevelopment potential.
Stonebridge Partner Kevin Tong said the purchaser ultimately took a longer-term view of the asset.
“The purchaser recognised the value of the underlying landholding and established Cheltenham location, while the strength of the tenant covenant provided confidence in the existing income,” Mr Tong said.
Stonebridge Partner Rorey James said pubs and hotels continued to appeal to investors due to their underlying property fundamentals.
“Pubs and hotels are typically positioned on substantial landholdings in high-profile locations, which continues to make the sector attractive to private investors seeking longer-term value beyond the immediate income profile,” Mr James said.
Other Stonebridge Pub & Hotel Transactions
Property Sale Price The Motley Hotel, Richmond VIC $36,000,000 The Central Hotel, Beaconsfield VIC $8,000,000 Yorkshire Stingo Hotel, Abbotsford VIC $5,888,000 The Old Colonial Inn, Fitzroy VIC $6,655,000 345 Clarendon Street, South Melbourne VIC $2,050,000 4 Railway Road, Blackburn VIC $8,000,000
All figures are approximate only.
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