This article is from the Australian Property Journal archive
THE wealthy Schwartz family has sold off a portfolio of Melbourne CBD east end assets, including the city’s oldest pub, the Duke of Wellington, for a combined $92 million.
Separate buyers purchased the 167-year old Duke of Wellington and an adjoining office tower, at 2 Russell Street, and the 65-room Adina Hotel at 88 Flinders Street.
A “major investor” paid $53.5 million for the Hotel, which included an IGA supermarket, car park and other properties, at a sharp 3.45% yield. They outmuscled Asian-based hoteliers and interstate investors.
The Duke of Wellington, established in 1853, and the nine-level building sold to a private family for around $38 million on a 4.03% yield, with Charter Keck Cramer acting on their behalf.
The pub was acquired by developer Andor Schwartz in 2003 for $4.525 million, before the office tower was added behind it.
CBRE negotiated the deals, with more than 35 separate bids received on both properties, including from including groups from Vietnam, Malaysia, mainland China, Dubai, Taiwan and Hong Kong.
They acted on behalf of brother Morry Schwartz, Danny Schwartz and Alan Schwartz, the sons of Andor and family matriarch Margit “Baba” Schwartz, who died in June. The family had held the properties for 40 years.
Australian Property Journal
