One of Perth’s most revered live music venues, the Indian Ocean Hotel, has been listed for sale – unlocking an opportunity to acquire more than 4,000sqm of prime beachside real estate.
CBRE Hotels’ Ryan McGinnity and David Kennedy have been appointed to sell the iconic asset under instruction from the receivers and managers appointed, HLB Mann Judd (Insolvency WA), via an Offers to Purchase campaign.
The sale marks the first time the family-owned asset has been offered to the market in more than 30 years.
Currently comprising a five level, 59-room hotel, the asset includes the iconic Indi Bar and Bistro, which has hosted some of Perth’s best live music over the past two decades, including The Waifs, John Butler and Dave Hole.
Located within the Metropolitan Redevelopment Authorities’ $57.4 million Scarborough Redevelopment Area, the Indian Ocean Hotel offers significant potential for future development, with a residential 160 zoning and additional special use as hotel.
Mr McGinnity said the property represented an outstanding investment opportunity that would attract strong buyer interest from a range of buyers.
“The property is not only one of the most loved hotels and live music venues in the northern beachside suburbs, but it is also strategically situated on 4,200sqm landholding in the soon to be revitalised Scarborough Redevelopment Area,” Mr McGinnity said.
“The multiple options which the site offers suggests the asset will be keenly sought after by onshore and offshore groups looking at hotel investment, or future residential or mixed use redevelopment.”
The current zoning allows for an eight-storey development, with potential for12-storeys, assuming community benefits, such as hotel or short stay accommodation, are included in any redevelopment of the site.
Mr McGinnity went on to say the Indian Ocean Hotel benefitted from a strong established business, which was still enjoying strong occupancy and good levels of profit.
“Having been family owned and operated for over 30 years, the longevity of the Indian Ocean Hotel business is proven and is a great indicator that a hotel should form part of any future redevelopment. At the very least, it’s a great holding income while determining the best outcomes for development.”
Mr Kennedy said the unique opportunity to undertake a landmark development in such a sought after location would be a key selling factor.
“Given the size of the property, the history of the venue and the recent changes to development height limits, the Indian Ocean Hotel site offers fantastic further development potential while retaining the existing hotel building,” Mr Kennedy said, adding given the hotel is now 45 years old, it may soon be time to redevelop the site entirely.