MELBOURNE, 15 October 2021: The Freehold Interest of ‘The Brook’, located in Point Cook has sold for $24.33 million within 24 hours closure of EOI, proving that Melbourne’s highly competitive retail and hospitality investment market shows no sign of slowing down. The property was offered exclusively for sale by JLL’s Will Connolly, Stuart Taylor and Tom Noonan via a national ‘Expressions of Interest’ campaign.
Offered with a long-term lease to blue-chip covenant the Melbourne Racing Club, the property offered a highly valuable, triple net lease, occupying a commanding 10,785sqm site in one of Melbourne’s most rapidly expanding suburban locations in Point Cook. A net annual income of $1,338,541 provided investors a strong platform of return with the added security of a 20-year initial term expiring in 2029, followed by three further 10-year options.
Will Connolly, JLL Hotels Vice President, commented on the flurry of interest on the property within the retail and hospitality investment market came from both Victorian and interstate investors. “Interest to assets like these are now coming from such diverse areas of the market that the EOI process undertaken built competitive tension to such a point that the successful purchaser was forced to act aggressively to stand alone amongst multiple bidders.
“This pressured environment has now become a trend with our recent successful Freehold sales of the Boundary Hotel, Bentleigh at $33 million, Edwardes Lake Hotel, Reservoir $28 million and just this week the Boronia Hotel at $24 million all undertaken via successful EOI programs.”
Showcasing a multi-faceted hospitality and gaming venue, The Brook provided modern amenity and extensive facilities which include a large family bistro with children’s play area, sports bar with TAB facilities, gaming lounge with 80 electronic gaming machines, multiple function spaces and extensive on-site parking.
Stuart Taylor, Senior Director of JLL Retail Investments concluding, “this has now proved abundantly clear that property investors are now looking at alternative assets such as The Brook in equal esteem to more traditional retail investments, given that demand for long WALE assets has never been stronger. Investors are now acutely aware that these assets provide strong tenant covenants, landlord favourable leases and attractive underlying land value”.
JLL continues it’s market dominance across the country, with $643.3m of hospitality assets settled or under agreement for Q3 alone. And for Victoria, two further on-market Freehold Interest opportunities in both Regional VIC and Metro-Melbourne are poised to set the market alight in the coming days.
