If only these walls could talk: Mr B's Hotel on the market
A seven-level building on a prominent corner site that’s been at the centre of Sydney nightlife since 1963 has hit the market with expectations of strong interest from local and international investors.
Once home of the well-known Mandarin Club, the property at 390-396 Pitt Street could fetch as much as $70 million. It incorporates the popular Mr B’s Hotel and is being sold fully-leased, with net annual income of $3.1 million.
Mr B’s – which has operated on the site since the Mandarin Club closed in 2009 – covers three-levels including a bistro and pub, three public bars and gaming room with 30 poker machines.
The hotel licence is being included in the deal and agent Mike Wheatley, from Knight Frank, said vendor Reserve Hotel Pty Ltd is prepared to enter into a sale-and-leaseback agreement with the buyer.
No price guide has been revealed but it’s expected to sell via expression of interest on a yield of around 4 per cent.
Co-agent Dominic Ong said the property offered significant development upside.
“The asset is 100 per cent leased to four strong cash-flow-generating businesses on a net lease basis, with the tenant paying all outgoings,” he said.
“This investment is offered with attractive development upside; the building is not heritage listed and there is a new concrete top level ready for additional floors, subject to council approval.”
He said the property had been refurbished and restored with extensive upgrades, including new windows, lifts, electrical, plumbing, fire protection and air conditioning.
It is close to Chinatown, World Square and Town Hall Station.
