Royal Mail Hotel Sold to Out-of-Town Investor for $925,000

Strategic Insights -

The 160-year-old Royal Mail Hotel in Sebastopol has changed hands, with a local real estate agent confirming the sale to an out-of-town investor. The historic landmark, initially built in 1865 and reconstructed in 1924, stands on a 1,800-square-metre site at 290 Albert Street. The property was sold with a long-term lease secured by established tenants with 30 years remaining. The sale price was $925,000, a figure that reflects the building's historical significance and potential for redevelopment.

Key Takeaways:

  • The Royal Mail Hotel was sold to an out-of-town investor for $925,000, with the building purchased and the business remaining with the current long-term tenants.
  • The sale included a long-term lease with 30 years remaining, a term that is significantly longer than the typical 25-year leasing contract for pubs.
  • The longer lease was written five years ago with the intention of giving the current tenants a chance to revive the business and incentivize their takeover.
  • The pub was closed for a period before the current tenants took over and have been operating the hotel since.
  • The annual return on commercial properties in Ballarat is expected to be about seven per cent, according to local real estate agent Chris Sargent.

Statistics:

  • The sale price of the Royal Mail Hotel was $925,000.
  • The building is located on a 1,800-square-metre site at 290 Albert Street in Sebastopol.
  • The long-term lease has 30 years remaining.
  • The typical leasing contract for pubs in the area is 25 years.
  • The annual return on commercial properties in Ballarat is expected to be about seven per cent.

Sources:

  • [Gwen Liu]
  • [Jellis Craig Ballarat agent Chris Sargent]
  • [Australian real estate market]