The Kirby family has sold cinemas on the Mornington Peninsula, including one in Sorrento. Photo: Supplied

Kirby family sell Mornington cinemas for $10m

Larry Schlesinger|Apr 17, 2019

The Kirby family, founders of listed entertainment group Village Roadshow, has sold a portfolio of cinemas on the Mornington Peninsula to local and overseas buyers for almost $10 million.

The family put the historic, 1894-built Sorrento cinema on Ocean Beach Road, which it owned for more than 70 years, and a more modern multi-screen complex in Rosebud up for sale in September, offering them with long-term leases back to a business they operate, Peninsula Cinemas.

Deals were recently struck on both properties with the Sorrento cinema selling to a local Melbourne investor for $5 million on a 4.5 per cent yield and the Rosebud Cinemas selling to a mainland Chinese investor for $4.377 million on a yield of just over 6 per cent.

The sales were brokered by Rorey James, Nic Hage, Justin Dowers and Kevin Tong of CBRE in conjunction with Max Prentice of Prentice Real Estate.

“Some of Melbourne’s most influential owners are choosing to sell in the current market,” Mr James said.

Asian interest

Mr Tong said the CBRE Asian Services Desk received a strong level of interest from Asian investors and developers for both the cinemas.

The sale comes as another grand Mornington Peninsula landmark, the 1875-built Continental Hotel – across the road from the Sorrento cinema – comes to market through CBRE and Sotheby’s International with a $20 million asking price.

The hotel is being sold by prominent hotelier Julian Gerner, who acquired it for about $17 million in July last year.