END OF AN ERA FOR ICONIC MELBOURNE EAST END HOTELS
Written on the 22 November 2017 by David Simmons
TWO iconic properties in Melbourne's East End have sold for a combined total of $92 million, marking the end of an era for the owners of the two hotels.
The Adina Hotel and Duke of Wellington are CBD landmarks in the heart of Melbourne's East End and were developed by the late Andor Schwartz. The same family have held the properties for the past 40 years.
The well-known properties The Adina Hotel at 88 Flinders Street and the Duke of Wellington at 2 Russell Street were purchased by separate buyers.
The Adina, a 65-room hotel, was purchased by a major investor who outbid a number of Asian-based hoteliers and interstate investors.
The $53.5 million sale price reflected a yield of 3.45 per cent.
The heritage listed Duke of Wellington pub and office building sold to a private family in a transaction advised by Charter Keck Cramer.
The Duke is Melbourne's oldest licensed pub and is named after The Duke of Wellington, Field Marshal Arthur Wellesley.
Morry Schwartz, a spokesperson for the sellers, says the family is happy with the final result.
"We were absolutely delighted with the final result achieved on both properties," says Schwartz.
"There is clearly a window for generational property owners to consider offloading their assets whilst the market is showing some very strong signs."
CBRE Melbourne's Mark Wizel says the property market in the city continues to exceed expectations.
"Top quality real estate always unearths new capital that may have been dormant for several years as evidenced by this sale result," says Wizel.
"The Asian buyer market in particular continues to defy the odds, with a number of groups coming forward with strong offers to acquire these iconic pieces of Melbourne real estate."
Business News Australia
Author: David Simmons