Pubs draw developers
Developers are zeroing in on the pub market.
Development agency CBRE says pubs offer all sorts of potential sites for redevelopment if they “tick all the boxes”.
“There have been many more pubs and hotels in built-up suburbs going onto the market in the past year or two compared with past trends,” CBRE agent Tim Last told the Herald Sun.
“It is because they are usually on prime, corner sites which are highly sought after by developers of apartments.
“You will see many of the properties are in bayside and inner-city suburbs because this is where developers like to build for maximum returns from buyers who desire those special locations.”
He said the heritage overlays did not deter the developers, they can see the opportunities.
“There aren’t a lot of buildings with heritage status left so developers are actually attracted to them because it means they can do something a bit left field incorporating the historical features, like a boutique complex,” Last told the Herald Sun.
“Plus, if they can’t get planning approval for a residential project, the developers can onsell the property knowing that a well-maintained, period building will hold its value.”
CBRE is now marketing a number of pubs for developers.
The most notorious is the Water Rat Hotel in South Melbourne. Formerly known as the Druid Hotel, it was the pub where Painters and Dockers Union strong man Pat Shannon was gunned down by a rival union member in 1973. That was at the height of the rampant dock workers crime spree known as the waterfront wars.
CBRE expects it to fetch a price of $3 million.
He says South Melbourne is one of the spots for developers building apartments and commercial property.
“South Melbourne has become one of the most desirable suburbs over the past five years … In particular, corner properties with a mixed-use zone have become highly sought after due to their high exposure and potential for holding income,” Mr Last told the Herald Sun.
“Just down the road there is an office complex going up over a massive 14,000 square m site and there are more in the works.”
by Leon Gettler, October 18th 2017
