Old Railway Hotel sells for $6.5M

The former Railway Hotel in Warragul, now a mixed-use commercial asset, has sold for $6.5 million to a Tasmania-based private investor.
Commercial real estate company CBRE said the sale highlighted continued demand for high-quality regional investments underpinned by diversified income streams.
CBRE's David Napoleone, Rachael Fabbro and Matthew Wright together with Brendan Wetherall of Wetherall's Signature Realty, negotiated the sale of the property at 81 Queen St.
Mr Napoleone said the asset's scale, diversified income profile and strategic location helped drive strong buyer interest throughout the campaign.
"Investors continue to be attracted to regional commercial assets that offer diversified income streams and genuine value-add characteristics," Mr Napoleone said. "This property combined a substantial refurbishment program, a fully leased tenant profile and a prominent position opposite Warragul Train Station, which resonated strongly with buyers."
The former hotel was converted into a mix of retail and office accommodation on a prominent commercial one zoned site.
The tenancy includes a wine bar, day spa, beauty clinic, hairdresser and barbershop, generating net income of $487,033 per year.
Ms Fabbro said the result reflected growing investor confidence in West Gippsland's long-term growth story.
"Warragul continues to attract attention due to its population growth, improving infrastructure and role as a major commercial hub for the wider Gippsland region," Ms Fabbro said.
"Assets of this scale and quality rarely come to market in the region, particularly those with a diversified tenant mix and significant recent capital investment."