Prominent West Melbourne hotel sold under the hammer

​Melbourne, 27 February 2012 - West Melbourne’s Railway Hotel has been sold at auction for AU$2.165 million.

The hotel occupies a prime site at 118 Ireland Street, on the corner of Stawell Street and alongside the recently upgraded North Melbourne Railway Station.

A private developer purchased the site through CBRE’s Scott Callow. The purchaser was one of four bidders at the February 23 auction.

Mr Callow said the possibility of repurposing the site had underpinned the strong auction result.

“We received considerable interest in the offering given the freehold interest in the hotel, which was offered with vacant possession,” Mr Callow said.

“It is ensured the purchaser will use the site as the location for a conversion to a residential apartment development.”

The site incorporates a public bar, dining room, outdoor beer garden and 26 rooms over two upstairs levels that were previously utilised as backpacker accommodation.

Mr Callow added that the developer would benefit from the property’s city-fringe location.

“West Melbourne has undergone a significant transformation in recent years, as residential developments have replaced former light industrial properties, leading to significant growth in the area’s residential population. This growth, combined with the area’s established business clientele, has underpinned demand for quality properties such as the Railway Hotel.”

The property is located in walking distance of the CBD and a range of other Melbourne attractions including Docklands, Etihad Stadium and the Queen Victoria Market.

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 firm (in terms of 2011 revenue).  The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 Web site at www.cbre.com.