Property Development

Malaysia’s Aikbee Group buys Melbourne’s Hotel Francis

Malaysia’s Aikbee Group buys Melbourne’s Hotel Francis
Written by The ReReport
As seen in the Source link, written by realestatesource.com.au on 2019-10-22 02:25:08

Prominent Malaysian developer Aikbee Group is paying
$13.75 million for a corner pub with development potential in the Melbourne
CBD.

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.

The 444 square metre site at 383-387 Lonsdale Street (marked) is close to $3 billion worth of new development.

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.

A dance floor and bar at Club Retro, which rents the hotel.

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