CHINESE INVESTORS SNAP UP BRIGHTON HOTEL FOR $15.8 MILLION

CHINESE INVESTORS SNAP UP BRIGHTON HOTEL FOR $15.8 MILLION
BRIGHTON'S Marine Hotel has sold for $15.8 million, following a heated sales campaign proving that Chinese appetite within Melbourne's real estate hotspots is still strong.

The Marine Hotel, located in the bayside suburb of Brighton, sold to a mainland Chinese investor and boasts 20 years of additional options remaining on the current lease term.

The property generates an annual net income of approximately $550,000 per annum, representing a benchmark yield of 3.30 per cent.

Within the last year and a half, Chinese investors have acquired $380 million worth of Victoria's income-producing real estate market.

CBRE's Mark Wizel who negotiated the sale in conjunction with Vinci Carbone says the property attracted strong interest.

"The Marine Hotel's prominent corner position in the heart of Brighton attracted a significant amount of interest both locally and offshore," says Wizel.

The successful purchaser outbid several Victorian based high net worth families and prominent Australian property players in the area.

"We were delighted to see such wide-ranging interest in the investment, which translated into a number of offers and a shortlist of four parties," says Wizel.

CBRE's Lewis Tong says the sale also represents high levels of confidence in Melbourne's south-east retail assets.

"The sale of the Marine Hotel is a very strong statement for the overall confidence that buyers have for investment assets in Melbourne's south east, especially given their growing understanding of affluent catchments in Melbourne," says Tong.

"The sale of Marine Hotel in Brighton highlights how a lack of available blue chip investment properties, combined with historic low interest rates, is helping support the continual yield compression especially in the retail sector."

The acquisition of the Marine Hotel follows the sale of Albert Park's Beach Hotel for $18 million in April, demonstrating continued Chinese interest bayside property. 

Never miss a story: Sign up to Business News Australia's free news updates

Follow us on Twitter, Facebook, LinkedIn and Instagram

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

Moderna booster shot receives provisional approval from TGA

Moderna booster shot receives provisional approval from TGA

The Therapeutic Goods Administration (TGA) has today provisionally ...

WA tourism investment streak continues for Twiggy's Tattarang with Cape Lodge acquisition

WA tourism investment streak continues for Twiggy's Tattarang with Cape Lodge acquisition

Andrew ‘Twiggy’ Forrest’s investment vehicle Tatt...

Circular economy company Close The Loop buys seafood packaging business for $3.25 million

Circular economy company Close The Loop buys seafood packaging business for $3.25 million

Melbourne-based circular economy company Close The Loop (ASX: CLG) ...

Australian drama productions hit record $1.9 billion expenditure

Australian drama productions hit record $1.9 billion expenditure

A new report released today by Screen Australia shows a record-brea...