Archive for September 2018

Archive for September 2018

Boardriders site has sold

THE Torquay headquarters of global surf giant Boardriders has been sold in a confidential deal struck this week.

A consortium of Geelong private investors cashed out of the 1.95ha Baines Cres property after the US-owned surf giant announced plans to relocate its head office to the Gold Coast.

Boardriders’ $1.6 million annual lease on the purpose-built facility runs until 2021, giving its new owners plenty of time, and income, to find a new use for the property.

Darcy Jarman, Geelong West, agent Tim Darcy handled the confidential transaction.

Mr Darcy said he was unable to divulge the price or identity of the buyer, other than to say it was a Melbourne-based group with previous success in buying and selling sizeable commercialgrade assets in the region.

However, he said during the campaign it would cost at least $20 million to buy 2ha of commercial land and develop a similar facility in Torquay today.

The property was expected to sell for significantly less than its replacement value.

Mr Darcy said the commercial complex’s size and position in central Torquay balanced the anticipated hit on value to potential investors of the major tenant vacating the building.

“It’s another positive endorsement of what’s happening in the Geelong region and the Surf Coast,” Mr Darcy said. “As an investment-grade product, it lives and dies on its intrinsic attributes and the fundamentals of the real estate in central Torquay, which would never be able to be replicated.

“A number saw it as an opportunistic offering, underpinned with strong income for at least three years.

“The improvements, which are specialised to house specific requirement for a headquarters are too good to dismiss.

“The long-term future is of a commercial nature, there might be some variance to that.”

Growth fuelling developers interest

THE prospect of at least half a dozen cranes working above Geelong’s skyline is giving confidence to developers to invest in the city’s western wedge.

The latest evidence is the sale to a local buyer of a 2012sq m city fringe site at 73-77 Mercer St, Geelong.

Darcy Jarman, Geelong West agents Tim Darcy and Simon Jarman handled the expressions of interest campaign, which ended in a confidential deal with the local party.

“We had a good spread of interest — we had local interest, we had interest from external areas, predominantly from the development sector within Melbourne, but we also had offshore interest as well,” he said.

“By virtue of its size and its proximity in terms of its location and profile to the waterfront and city centre, it was a strategic site that attracted interest.

“We’ve had a lot of a strategic sites that have been absorbed in the past 12 to 24 months, key sites that have been purchased on market and off market. What the campaign demonstrated is that there is still very strong appetite for well positioned assets, whether they’re investment grade or development sites within Geelong.”

Mr Darcy said during the campaign that he expected offers would come in between $4 million and $5 million for the site.

The Advertiser understands that some offers exceeded that mark.

The property is a direct neighbour to the Miramar apartment project in Cavendish St and is also next to the Winter & Taylor car dealership in Mercer St. James Morphy recently sold the Kia and Holden dealerships to Blood Motor Group but has retained ownership of the land.

An existing $67,980 a year lease to Mototech runs until 2020 at 73-77 Mercer St.

The campaign underlines the amount of interest surrounding Geelong as a growth market and the amount of activity around the region.

“We’ve seen extraordinary activity in our urban growth areas, and we’re seeing extraordinary activity in our central area, and you only have to walk around the central part of Geelong, or if I look out my window from my office I can see three cranes,” Mr Darcy said.

“By the end of the year we might have six or seven cranes in the sky.

“So, Geelong is very much perceived now as a very strong growth market, just by virtue of its geographic location, it’s accessibility to Melbourne and it’s attracting a lot of interest domestically but also commercially as well.”