Adelaide icon the Lion Hotel for sale as part of amalgamated ‘super site’
A “super site” in North Adelaide consisting of the Lion Hotel and an adjoining office block is on the market.
The Lion Hotel, for sale for the first time in more than 20 years, is a multi-award winning Adelaide pub owned and operated Tim Gregg and Andrew Svencis located at 161-175 Melbourne Street.
The pair purchased the heritage-listed pub, which was built in 1871 and initially operated as a brewery and malt house, in 1996 and conducted an extensive refurbishment.
The three-level office block, which sits on a separate title at 183 Melbourne Street, was purchased by the pair about nine years ago. The two properties sit on 4833 square metres.
Industry sources said the combined site was expected to fetch a price in excess of $17 million.
Listing agent Will Connoly, JLL’s Hotels & Hospitality Group vice-president, said the hotel’s proximity to the Adelaide Oval and CBD would make it an ideal purchase for interstate pub operators looking for an entry into the Adelaide market.
“It will attract interest in South Australia and nationally as an attractive option for local and national hoteliers’ groups looking to expand their capital city portfolios or investors seeking a much higher holding income on this development site than alternative land-banking opportunities,” Mr Connoly said.
New height restrictions in Adelaide mean that the office block section of the site could be a contender for future redevelopment, with the returns from the office block and hotel providing holding income in the interim.
“There has also been regulatory changes to lift the height restrictions so development in the future is definitely a strong option for the buyer,” said Roger Klem, JLL’s head of sales & investment South Australia.
The office is currently leased to 11 tenants, including well-known South Australian wool brokers the Michell Group, and Mortgage Choice.
Mr Gregg and Mr Svencis are selling up in order to move on with a new phase of their lives.
“When we took over the hotel and historic brewery it was very run down and totally out of sync with the broader market and the vibrant local precinct. It’s been quite a journey, with many state and a few national awards along the way, and more importantly a great staff and management team, and lots of wonderfully loyal customers,” Mr Gregg said.
“We’ve been blessed with great people for years and are starting to find it a bit too tempting to ease off our own involvement these days and think it’s time to make our exit.”
Interest in commercial properties in inner Adelaide is strong, particularly for multi-tenanted assets, according to Mr Klem.
“There is good demand for commercial investment property in this part of Adelaide,” Mr Klem said. “This property is just three kilometres from the Adelaide CBD and close to major transport routes which makes it attractive to potential buyers/investors.
“It is also attractive because of its long history of a consistent income combined with a staggered lease profile.”
Expressions of interest for the amalgamated site close on November 22.
This article has been updated with a new price guide.
Commercial Real Estate, 24th October 2019
This story originally appeared on commercialrealestate.com.au
