Pints on offer but few punters as Melbourne watering hole the Mitre Tavern passed in at $6.05 million

Legendary Melbourne CBD watering hole the English-style Mitre Tavern failed to sell at auction today despite a large crowd gathering outside on Bank Place in the damp and cold.

The mediaeval-looking tavern was passed in at $6.05 million with just three bids received, including one from the vendor for $6 million.

Bidding started at $4 million – or four pints, as the bidder called out initially.

The auction was conducted by David Combes, managing director of Alexander Robertson, which also had the listing.

It was listed with $6.5 million-plus hopes.

Most who attended appeared to be interested observers, intent on enjoying a pint after the swiftly concluded auction, plus a few industry players

Kristian Peatling who alongside colleague Warwick Bramich from Alexander Robertson marketed the tavern, told Property Observer he was confident of negotiating a sale post-auction.

The pub, which has claims to hold one of the oldest continuous pub licences, granted in 1868 when a two-storey private dwelling was converted to a drinking house, was listed for auction with $6.5 million-plus hopes.

The pub has current net annual income is $430,000 plus GST with a long-term lease with three renewal options of 10 years each.

Set on Bank Place between Collins and Little Collins streets, it last traded at $6.3 million in 2008 when bought by the Toorak investor Ian Hicks from the hotelier Robertson family. There was a $4.6 million transfer in 2006 and a $5.75 million transfer in 2004.

The two-storey pub has 480 square metres of retail space as well as one of the city's largest outdoor beer spaces.