Historic Healesville pub with secure lease listed for sale in Yarra Valley
The Grand Hotel in the Victorian town of Healesville certainly lives up to its name: the ornate building occupies a large corner site and dwarfs nearby businesses. Now, the historic Yarra Valley pub has been listed for sale with a secure lease in place.
The hotel at 270 Maroondah Highway sits on a single-title 1509-square-metre parcel, making a strong first impression on the drive into town.
“It’s the first major building that you see at the end of a tree-lined boulevard, and it really does stand out,” says selling agent Mathew George of Savills.
Historic corner landmark
Built in 1888 and serving the town continuously since then, the Grand sports a distinctive mansard-style roof, a covered front balcony and several red-brick chimney stacks.
Inside, there is a main bar and dining room, an upstairs function room, which also hosts live music, and 16 accommodation rooms in single and twin configurations.
A large beer garden with a children’s play area, a drive-through bottle shop and a car park sit at the rear of the property.
The current operators are midway through a five-year lease, with options for four further five-year terms with market-rent reviews at the start of each option period. The property currently generates $230,000 in income a year.
“Freehold assets like this are seldom put on the market in this area, particularly ones in such good financial shape,” George says.
Commercial 1 zoning offers significant flexibility for prospective buyers interested in enhancing the hotel’s offering. The hotel rooms currently share bathroom facilities and are not equipped with modern conveniences like televisions, but could be overhauled, subject to the relevant approvals.
While there is scope for improvement, George says there’s no pressing need to conduct any work or change the business model.
“The tenants are secure and the business is thriving,” he says. “For an investor, there is nothing to do but reap the benefits.”
Yarra Valley appeal
Healesville is located about 65 kilometres north-east of Melbourne on the Watts River, a tributary of the Yarra River.
“It’s a beautiful area [with] rolling hills, green countryside and vineyards,” George says. “There’s incredible local produce and popular food markets.”
The town serves as a convenient base for travellers visiting Yarra Valley attractions like Healevsille Sanctuary, a 28-hectare native-wildlife park, the Four Pillars gin distillery, and The Memo arts and cultural centre. It’s also home to several wedding venues.
“Healesville’s proximity to Melbourne makes it incredibly popular with day-trippers,” George says. “It’s busy 52 weekends out of the year. It’s a thriving little community.”
The vendors, two local families, own several assets in town and have decided to sell in order to consolidate their holdings.
Savills is accepting expressions of interest around $3.5 million until December 2.
