Iconic pubs up for sale in Carlton and Collingwood

Melbourne, 1 October 2014 – This week sees two landmark Melbourne pubs placed on the market for sale, the historic Corkman Irish Pub (formerly the Carlton Inn) opposite Melbourne University in Carlton and the British Crown Hotel in Collingwood are both being offered to the market for their competition. CBRE Melbourne sales agents expect both properties will be highly sought after and come to the market at a time where supply of such properties are limited and demand from investors and developers underwritten by the current low cost of debt is approaching fever-pitch.

CBRE Hotels agents Scott Callow, Mark Wizel and Joseph Du Rieu have been appointed as the exclusive agents for the sale of the properties and expect strong interest from both local, national and international buyers who will quickly recognise the high quality nature of both assets being offered for sale.

The Corkman Irish Pub is being offered to the market for sale by Public Auction on October 30 on behalf of a family that has owned the asset for many years, it is expected to be hotly contested with a number of different buyer types suiting the property, which will be offered with the ability for vacant possession in the short term. The pub is strategically located at 154-160 Leicester Street Carlton and is surrounded by Melbourne University campuses and ancillary properties.  Offered as a freehold site subject to a six month lease. The buyers have the potential to take control of the business upon lease expiry, or alternatively look at development options (STCA). The property has a holding income of approximately $82,000 per year, sitting on 450sqm of land, with a mixed use zoning which is expected to attract significant interest from developers who are acutely aware of how lucrative land within this pocket of Carlton has become over the past decade.

"CBRE are delighted to be handling the historic sale of the Irish Corkman, it has become an institution for many Melbourne University graduates over the years and no doubt will bring back fond memories for any buyers looking at acquiring the property who attended the university" Director of CBRE Hotels Scott Callow said.

The British Crown is at 14-18 Smith Street, Collingwood, within 2 kilometres from the CBD on 550sqm of land. The property will be sold by Private Treaty, with a current lease in place.

CBRE Hotels expect to see strong domestic and international interest for both properties given their immediate proximity back to the Melbourne CBD. Recently, the demand for prime sites within the CBD and city fringe has reached record levels, with land values growing from $14,000sqm to $28,000 per sqm.  The Corkman is expected to achieve a price in the high $3 million range, the British Crown in the low $3 million.

Joseph Du Rieu of CBRE Hotels said the Melbourne pub market is experiencing a changing dynamic, with many underperforming pubs in top locations achieving premium sale prices. He says this is due to the strength of the underlying land value, and high demand for quality sites in the CBD and city fringe.

Mr Du Rieu said “We have seen many recent property sales follow a path pointing towards this emerging trend, evident of such was in the recent transactions of the Clarendon and Town Hall Hotel in South Melbourne, the Railway Hotel, West Melbourne, and the Duke of Kent Hotel in the north western corner of the Melbourne CBD.”

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 www.cbre.com.