Schwartz Family List $80 Million Portfolio Including Melbourne’s Oldest Pub

The Schwartz family is offloading two well-known hotels on Flinders Street, including Melbourne's oldest pub, in a sale that will net up to $80 million.  

After 40 years of ownership, the two buildings will be marketed as a portfolio by CBRE comprising the 65-room Adina Hotel, an IGA supermarket and other laneway properties at 88 Flinders Street, the 167-year-old Duke of Wellington pub and an adjoining nine-level office tower at 2 Russell Street, opposite Federation Square.

The assets will be offered together or individually via an international expressions of interest campaign being handled by CBRE Melbourne Middle Markets agents Josh Rutman, Mark Wizel, Lewis Tong and Kiran Pillai in partnership with CBRE Hotels agents Rob Cross and Scott Callow.

The immediate precinct has benefited from strong recent transaction activity, with a multi-storey car park and office at 114 Flinders Street selling to a Hong Kong investment group HK Realway for about $120 million and a circa 5% yield.

Adina Hotel, 88 Flinders Street.

“We are currently dealing with several offshore purchasers who are interested in acquiring mixed real estate assets, similar to those that they own in their domestic markets,"Mr Wizel said.

"We expect particularly strong interest to come from mainland China, Hong Kong, Indonesia and Singapore.”

The Adina is fully leased to international operator Toga Far East Hotels until 2021 with no further options. It also features an 88-vehicle car park, a recently refurbished IGA supermarket and a substantial rear parcel of land, which connects to Flinders Lane and Duckboard Lane. The warehouse property is home to the iconic laneway whisky bar Eau De Vie and additional warehouse style hotel rooms.

The 2 Russell Street property, located on the corner of Flinders Street opposite Federation Square and the Forum Theatre, comprises a nine-storey office tower and the recently upgraded, multi-level Duke of Wellington pub. The pub is 100% leased to Dixon Hospitality with a highly favourable 3am liquor licence.

Established 1853, The Duke is Melbourne’s oldest licensed pub - named after Field Marshal Arthur Wellesley (aka the Duke of Wellington). Wellesley famously led the British forces to defeat Napoleon in the Battle of Waterloo in 1815 and went on to become British Prime Minister in 1828.

The office tower at the rear of the pub features fully self-contained whole floors with three sides of natural light and sweeping protected views over Federation Square, Birrarung Marr, the Yarra River and the Botanic Gardens. It is currently tenanted by a range of technology and design companiesThe portfolio, known as the "East End Selection", is being offered for sale by international expressions of interest closing on Friday 27 October 2017.

Top image: Duke of Wellington, 2 Russell Street