The property comprises a 1,100sqm building, with a ground floor bar and dining space, a sprawling split-level beer garden, rooftop bar, and neon-drenched basement bar. It is on a 485sqm corner site with more than 45 metres of frontage to Church Street and Lesney Street.

AVC’s 25-year lease runs to 2039 with 2 10-year options, currently returning $516,785pa net with 3% annual increases and a market review at option.

Burns said, “This was one of Melbourne’s premier pub offerings in 2024, recognised by private players through to major institutional investors as really good real estate,” Burns said.

The sale price of $9 million reflected a 5.75% yield.

“It’s incredibly rare for an asset like this to be offered, particularly at this pricing.

“The investment fundamentals are extremely strong - featuring a mostly net lease with a 25-year term and long options to one of Australia’s best hotel operators.

“We expect the yield will tighten again as the economy stabilises, while the asset in the meantime offers guaranteed income from a blue-chip tenant with fixed increases.

“This simply represented good real estate in a booming location,” Burns said.

The acquisition represents another investment from Charter Hall into the precinct, following on from their nearby development of Australia Post’s new headquarters.

AVC owns and operates a total portfolio of 215 venues across Australia and New Zealand, including St Kilda’s famous The Esplanade Hotel.

The $50 billion alternative investments- focused firm PAG earlier this year completed a $1.45 billion deal to take an 80% controlling
stake in AVC, effectively valuing the business at more than $1.81 billion.

“This result is yet more evidence of the incredible resilience that Australia’s hotels market has shown over the past few years,” Burns said.

The property is on a prominent corner site within the highly sought-after commercial precinct of Cremorne, which has a high concentration of international headquarters, co- working spaces and creative spaces. Major commercial occupiers in and around the area include Carsales, Seek, Disney, Tesla, NDIS, MYOB, Adidas, Australia Post, Red Energy, Reece, 7-Eleven, Uber, Mattel, REA Group and 2XU.

Nearby is Swan Street and Church Street, where a multitude of restaurants, cafés and bars create what is recognised as one of Melbourne’s best hospitality precincts. The commercial and lifestyle markets have attracted many Melburnians looking to live, work and play in the inner city, resulting in a surging local catchment living in new high-density residential dwellings.

Meanwhile, East Richmond Train Station is diagonally opposite the property, and numerous nearby tram stops along Church Street and Swan Street further enhance its accessibility and amenity.

“The commercial, lifestyle and location fundamentals of the area clearly encourage strong market participation across a range of sectors, from office developments through to pub investments,” Burns said.

The building at 447 Church Street has been occupied as a licensed premises since the 1850s. Prior to AVC’s refurbishment and operation was The Great Britain Hotel - or The GB, as it was affectionately known - a local institution that in past decades was an early champion of craft beers and hub for live local music.