Prominent Malaysian developer Aikbee Group is paying
$13.75 million for a corner pub with development potential in the Melbourne
Hotel Francis, which is leased to Club Retro until 2021, rises
three-storeys at 383-387 Lonsdale Street.
The art deco pub occupies a 444 square metre site, also
with frontage to Niagara Lane.
Colliers International’s David Sia, Daniel Wolman and Guy Wells promoted building activity around the site: valued at more than $3 billion, it includes the Brady Group’s 380 Lonsdale Street and the future National Australia Bank headquarters at 405 Bourke Street.
Cbus Property is also proposing a $1 billion project known
as 435 Bourke Street which would see the demolition of a heritage-graded Yuncken
Freeman designed office at 140 Queen Street.
Hotel Francis was offloaded by private investors who paid
the wealthy Lechte family $5.75 million in 2011.
Last year, the owners paid the same family $600,000 for an adjoining 59 sqm laneway, which was amalgamated with the hotel, prior to it listing it for sale last month with a price guide of about $12 million.
Based on the annual rental return ($542,788), 383-387 Lonsdale Street traded on a 3.9 per cent passing yield.