Freehold interest in the Kalkallo Hotel is for sale for the first time in 50 years
A landmark hotel asset in Melbourne’s fast growing Northern Growth Corridor has hit the market for the first time in 50 years, along with additional parcels of vacant land presenting a significant future development opportunity.
Located at 1324 Hume Freeway, Kalkallo, the offer comprises a fully leased hotel with adjoining carpark and vacant land. The hotel and carpark provide annual income of $149,348.68 while two residential dwellings offer a combined income of almost $20,000 per year.
In total, the combined land area over several titles is slightly more than 18,400sqm.
CBRE’s Mathew George and Daniel Eramo have been appointed to manage the Expressions of Interest campaign, which closes on Tuesday, 7 December 2021.
“The hotel property includes a bottle-shop, several bars, beer garden, bistro, function room and accommodation upstairs and attached to this is the valuable late-night general liquor license that allows trade (on and off premise) up to 3:00am,” Mr George said.
“The current lease includes several options through to November 2032 and at the expiry of the lease, (if not sooner) the hotel has the potential to be a highly lucrative destination venue, servicing the hundreds of thousands of residents moving into the newly formed neighbouring estates.”
The Kalkallo Hotel is bound by the Hume Freeway, (with over 115 metres of combined frontages), with the additional land having frontages to Yaldwin and Cameron Streets, providing multiple ingress and egress options.
Township zoning and an approved planning certificate suggests that the vacant/available land could suit multiple uses including but not limited to the development of hotel, food & beverage, accommodation, leisure & recreation, residential, medical centre, aged care, place of worship, industry and warehousing, subject to the relevant planning approvals.
“Significant infrastructure investment is being rolled out by the State and Commonwealth Governments on multiple projects in short and medium term which continues to support market demand,” Mr Eramo said.
“High levels of demand from investors, developers and occupiers have continued to drive land prices up and confidence has escalated in the development community around turnover and absorption, resulting in shortened project horizons and therefore a reduction in risk.”
The properties are located within the Northern Growth Corridor approximately 30km north of Melbourne’s CBD and is surrounded by rapidly expanding residential, retail, and industrial communities and precincts.