Established entertainment venue provides rare investment opportunity

Melbourne, 25 July 2014 - A popular iconic pub is being taken to the market in Shepparton, Victoria. The Goulburn Valley Hotel is a modern entertainment venue which was extensively renovated in 2007 by the current owner.

Located at 233-251 High Street, the prominent two storey pub was originally constructed in 1928 and benefits from a high exposure corner site with three frontages. Shepparton is a major service centre approximately 190 kms north of the Melbourne CBD.

The Freehold investment is being offered subject to an attractive long term lease. There are approximately 33 years of tenure remaining with a highly experienced publican operating the leasehold business.

Scott Callow, Mark Wizel and Joseph Du Rieu from CBRE Hotels are marketing the property, in conjunction with Cropley Commercial. The hotel is currently owned by Australian Hospitality Management, a Melbourne based company with extensive experience in the hotels business.

Mr Callow said the refurbishment provided a range of high performing profit centres including 40 gaming machines, bistro dining, sports bar and function facilities.

“The net income is circa $847,000, coming in part from the region’s leading gaming room,” Mr Callow said.

“The Victorian pub investment market has not seen an asset of this calibre offered in recent times. We believe the current appetite from banks and other major lending institutions and relative affordability in funding will see the Goulburn Valley Hotel attract strong interest from both local and national investors.”

“The Victorian investment market continues to exemplify tightening yields off the back of strong foreign investment, we consider the pub investment market likely to follow suit over the coming 6 to 12 months.”

Mr Wizel said the hotel provides a prime investment opportunity with the income being secured by an experienced hotelier.

“The income is secured by a strong lease covenant to a quality operator, with highly attractive fixed annual increases of 3.5% and no market review prior to 2022,” he added.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at