Trophy asset in Lorne sells for the first time in almost 30 years

MELBOURNE, 4 August 2022 – One of Lorne’s most prized pieces of real estate, Lornebeach Apartments and Retail has been sold for the first time in almost 30 years, following a highly competitive sales campaign which generated strong interest from local, interstate and overseas players.

The campaign generated more than 140 enquiries which led to eleven formal offers being received by JLL. 

JLL’s Hotels & Hospitality Group’s Vice President Nick MacFie and Head of Victorian Capital Market’s Executive Director Josh Rutman, along with colleague Mingxuan Li, sold the - five ground floor retail shops and six holiday apartments - situated at 106-112A Mountjoy Parade, Lorne via an international Expressions-Of-Interest campaign.

JLL’s Vice President of the Hotels & Hospitality Group, Nick MacFie said, “The campaign attracted interest from a number of groups looking for a passive investment and seeking diversity of income, reliability and future upside in the one asset. It is rare to find beachfront property with long-standing tenancies and further potential upside in the future, which clearly the market recognised. With uninterrupted and protected ocean views, this address is in a prime position on the main street of Lorne.

“JLL have now sold over $100m worth of real estate along the world-renowned Great Ocean Road since 2021 including pubs, service stations, mixed-use investments, caravan parks and development sites with a number of these vendors having owned the properties for decades. This further highlights the quality of this location and the continued desire from investors to have holdings in this region,” Mr MacFie concluded.

Mountjoy Parade is the Surf Coast’s busiest main street, with surf shops, hotels, and an array of food & beverage outlets creating a strong community focus directly opposite the beach and the Lorne-Queenscliff Coastal Reserve.

Lorne is host to the famous Pier to Pub open-water swim competition and is home to another 200 events during the year. Testament to its reputation, the town is well regarded by retail and hospitality names such as Tommy Bahama (a tenant within the property) and Justin Hemmes’ Merivale which recently acquired the Lorne Hotel for $38 million.

JLL’s Executive Director and Head of Capital Markets, Josh Rutman said, “Selling for more than $2,000,000 above initial expectations, this sale represents the increasing demand for Ocean Beach Road / Surf Coast investment opportunities by new market entrants from Melbourne, Sydney and overseas. This interest is demonstrated by the more than 140 enquiries we received for this asset alone.

“The strong competition amongst investors for Lornebeach Apartments and Retail correlates with the increases in population growth with people opting for a lifestyle change post pandemic. The successful purchaser from NSW is looking to diversify their real estate investments into other states, recognising the rarity of an opportunity like this and the outstanding fundamentals the asset possesses,” he said.