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- A landmark hotel asset in Melbourne’s fast-growing Northern Growth Corridor has been put for sale for the first time in 50 years
- The offer includes a fully leased hotel with adjoining parking and unoccupied property at 1324 Hume Freeway, Kalkallo
- The hotel and parking provide a yearly revenue of $149,348.68, while two residential residences generate over $20,000 per year
For the first time in 50 years, a historic hotel in Melbourne’s fast-growing Northern Growth Corridor has been listed for sale, coupled with adjacent parcels of unoccupied land giving a substantial potential development opportunity.
The offer includes a fully leased hotel with adjoining parking and unoccupied property at 1324 Hume Freeway, Kalkallo. The hotel and parking provide a yearly revenue of $149,348.68, while two residential residences generate over $20,000 per year.
The entire land area across many titles is somewhat more than 18,400sqm.
Mathew George and Daniel Eramo of CBRE have been recruited to handle the Expressions of Interest campaign, which will end on Tuesday, December 7, 2021.
“The hotel property includes a bottle-shop, several bars, beer garden, bistro, function room and accommodation upstairs and attached to this is the valuable late-night general liquor license that allows trade (on and off-premise) up to 3:00 am,” Mr George said.
“The current lease includes several options through to November 2032 and at the expiry of the lease, (if not sooner) the hotel has the potential to be a highly lucrative destination venue, servicing the hundreds of thousands of residents moving into the newly formed neighbouring estates.”
The Hume Freeway surrounds the Kalkallo Hotel (with nearly 115 metres of total frontage), and the adjacent site has frontages to Yaldwin and Cameron Streets, allowing several entry and egress options.
Township zoning and an approved planning certificate indicate that the available land could be developed for a variety of purposes, including but not limited to hotel, food & beverage, accommodation, leisure & recreation, residential, medical centre, aged care, place of worship, industry, and warehousing, subject to the necessary planning approvals.
“Significant infrastructure investment is being rolled out by the State and Commonwealth Governments on multiple projects in short and medium term which continues to support market demand,” Mr Eramo said.
“High levels of demand from investors, developers and occupiers have continued to drive land prices up and confidence has escalated in the development community around turnover and absorption, resulting in shortened project horizons and therefore a reduction in risk.”
The sites are located in the Northern Growth Corridor, some 30 kilometres north of Melbourne’s CBD, and are bordered by fast growing residential, retail, and industrial towns and zones.
