Golden City Hotel: 1856-established Ballarat pub strikes gold in $4.15m 'landmark sale'
A gold rush-era pub in the heart of Ballarat has changed hands in a $4.15 million deal.
The fully-leased, two-storey Victorian-style pub – known for its food seven days a week – is considered one of Ballarat’s most prominent hospitality assets.
The Golden City Hotel – in the regional town’s CBD at 429 Sturt Street on the corner of Dawson Street – was built in 1856, five years after gold was found in Ballarat in 1851.
The deal, attracting an anticipated 8.5 per cent yield, was struck by Burgess Rawson partner Raoul Holderhead, in conjunction with Colliers Ballarat’s Lauchlan Waddell and David Wright.
“This is a landmark sale for Ballarat,” says Holderhead.
“The Golden City Hotel is an iconic building with a long-standing presence in the community, and we saw strong demand from investors who recognised the unique combination of heritage appeal and solid lease security.”
Holderhead said the campaign saw a lot of interest, attracting 58 enquiries during the expressions-of-interest campaign.
The pub features a large bistro, bar, cafe, conference and event spaces, along with al fresco dining areas.
“It’s hardly skipped a beat the entire time,” says Holderhead, “I don’t think it’s been a day without a tenant.”
The buyers, a small private group from the Ballarat area looking for a long-term investment, struck a deal with the vendors who had held it for nearly 20 years, says Holderhead.
The investors, thought to be no strangers to the pub game in the Western District, were buoyed by the lease security, Ballarat’s strong population growth, and its expanding tourism sector, he adds.
“As Ballarat continues to grow as a cultural and economic hub, quality assets like this are increasingly sought after. The sale result reflects a broader confidence in the city’s future and the enduring appeal of blue-chip hospitality investments,” he says.
The business is operated separately by an established “hotelier and restaurateur”, who signed the lease about 18 months ago, and runs breakfast through to dinner.
He has since signed a renewed five-year lease until 2029, with further options extending to 2054.
The current net income is $388,589 annually, plus GST, with CPI-based annual rent reviews contributing to its earnings outlook.
“It’s a restaurant destination, definitely. But the other part is, you know, they’ve got good function rooms upstairs and the balcony, the balcony looks awesome. They do hold functions up there, weddings and birthday parties, all that sort of stuff,” says Holderhead.
Striking a commanding presence on a 567-square-metre corner block, with 56 metres of street frontage, the property was offered on a net lease basis.
The tenant remains responsible for all standard outgoings, excluding land tax.
The property is zoned Commercial 1, with about 8000 passing vehicles daily. It has a strong strategic appeal due to its location near Central Square Shopping Centre, anchored by Myer, Big W and Woolworths, as well as Ballarat railway station and Federation University.
Ballarat’s population is forecast to surge 32 per cent to 164,365 by 2046, and is considered one of Australia’s most desirable regional communities.
Originally named the Adelphi, the pub advertised in the Ballarat Star on September 3, 1856, according to a Victorian Heritage report.
By 1900, owned by James Coghlan, the pub underwent alterations designed by architects E and B Smith, and its name was changed to the Golden City.
When gold was struck in Ballarat, the area was flooded with 6000 miners a week seeking their fortune, fast-tracking Australia’s wealth and economy.
