The Adina Hotel and Duke of Wellington in Melbourne’s East End have sold for a combined $92 million – marking the end of a 40-year era for the iconic CBD landmarks.
The well-known properties – The Adina Hotel at 88 Flinders Street and the Duke of Wellington at 2 Russell Street – were purchased by separate buyers, with each asset reflecting new pricing benchmarks for their respective sectors.
Both properties were developed by the late Andor Schwartz and have been held by the same family for 40 years.
The assets were offered via an International Expressions of Interest campaign undertaken by CBRE Melbourne Middle Markets’ Josh Rutman, Mark Wizel, Lewis Tong and Kiran Pillai, in partnership with CBRE Hotels’ Rob Cross and Scott Callow.
The Adina, which comprises a 65-room hotel, was purchased by a major investor, who outbid a number of Asian-based hoteliers and interstate investors. The $53.5 million sale price reflected a yield of 3.45% – one of the sharpest seen in the sector in over a decade.
The second asset, the heritage listed Duke of Wellington pub and office building, sold for a record yield of 4.03% to a private family, with Charter Keck Cramer acting on their behalf.
Established 1853, The Duke is Melbourne’s oldest licensed pub – named after Field Marshal Arthur Wellesley (aka the Duke of Wellington). Wellesley famously led the British forces to defeat Napoleon in the Battle of Waterloo in 1815 and went on to become British Prime Minister in 1828.