Montague pub sells for $3.3 million

One of South Melbourne’s best known pubs has been sold for around $3.3 million signalling a fresh round of hotel sales for 2018.

The Fermanis family sold the freehold of the Montague Hotel at 355 Park Street off market.

The pub is sitting on a yield below 4 per cent and the family says it was made an offer that was just too good.

“While our family and I weren’t actively seeking to sell the property, the offer presented to us was simply too attractive to ignore and in the end we believe we achieved an incredible result,” vendor Noel Fermanis told the Sydney Morning Herald.

The Montague is a two-level corner hotel in a residential area. While many of Melbourne’s pubs have fallen into the hands of developers attracted by their large, strategic corner locations, the Montague is expected to keep running as a going concern.

It has an 18-year lease to publican Bon Vivant Group led by Nick Allardice who recently purchased the leasehold to the nearby Cricketers Arms on a 22-year term.

Bon Vivant is also active interstate, running also the Clove Lane fine dining restaurant in Sydney’s Randwick.

The Fermanis family is also looking at another sale.

The family has put the freehold of their second venue, Abbotsford’s The Retreat Hotel, on the market. They expect it will fetch around $2.5 million.

The Retreat at 226 Nicholson Street is best known for as the location where they filmed  iThe Sullivans television series.

It will go to auction in March with vacant possession.

The sale of the Montague comes with the hospitality sector getting active again with a number of hotels coming on to the market.

Wyndham City Council for example is planning is to sell the leasehold for the historic Bridge Hotel in Werribee though agents Fitzroys. The pub’s 40-year lease for covers its café, restaurant, microbrewery, bar, function centre and live music venue.