Archive for October 2018

Archive for October 2018

Easy earner for buyer with vision

COULD there be a commercial investment opportunity in the Geelong region that presents an easier way to make money?

The Oakley concept store at Torquay’s Surf City Plaza has been described as a bulletproof investment opportunity and it’s not
hard to see why.

The landmark store at Shop 7, 61 Geelong Rd, opposite Rip Curl’s Torquay retail headquarters, is subject to a secure, long-term lease through Oakley’s global parent company, Luxottica Group, which controls a large portfolio of luxury, fashion, sports and performance eyewear brands.

Darcy Jarman, Geelong West agent Tim Darcy said a strong lease covenant supports the earning potential of the property.

Luxottica pays more than $185,000 a year in rent, with significant growth potential.

“This is one of their concept stores and as we understand it is one of their best performing stores nationally,” Mr Darcy said.

“They’ve been there since 2001, so they’ve got long history with the complex.

“Their current lease doesn’t expire under December 2023, with a further seven-year option.”

Mr Darcy said it was a triple net rent — they pay all the out outgoings, including the land tax — while a further contributing factor to the strength of the covenant is that there is strong rental growth built into the lease with 5 per cent annual reviews.

“Now you will find it very difficult to find any covenant or lease that will provide you with annual reviews of 5 per cent throughout, which includes the option period as well,” he said.

“Those that are seeking a passive haven for their money, this is a good as you will get,” Mr Darcy said

He wouldn’t speculate on price, but said it produce an attractive yield.

“Properties of this ilk in Melbourne have been selling for a yield of 2.5 to 2.75 per cent,” he said.

“Now it’s not going to be that, it’s going to be a lot better, it’s going to be an attractive yield for investors in the region.”

The recently refitted shop has a floor area of 242sq m in a 10,817sq m land holding.

Offers close November 15 at 4pm

Local investors grab rowing’s medal factory

THE Geelong home of a boat builder that’s turned out craft that have secured 75 per cent of Aussie rowing’s Olympic medals since 1992 has found new owners in a quick sale.

A Geelong investment group secured the factory of boat builder Sykes for about $6 million, industry sources said.

The 12,140sq m Industrial 1 zoned property at 65-67 Tucker St was snapped up well ahead of its private sale deadline of  November 1.

Since the 1992 Barcelona Olympics, 75 per cent of Australian rowing medals have been won by competitors using Sykes craft.

Darcy Jarman, Geelong West agent Tim Darcy said the 1.2ha land component underpinned the investment in tightly-held Breakwater.

Sykes’ five-year lease runs to 2023, with a five-year option, paying $394,628 a year.

The purpose-built 4978sq m warehouse and office complex holds Sykes’ state-of-the-art manufacturing facility, which turns out advanced rowing boats for the Australian, Japanese and US markets.

Mr Darcy said late Geelong businessman Alex Popescu developed the factory for Sykes, which relocated from Newtown in 2009.

His wife, Helen Popescu, was selling the property, he said.

As well as supplying Australian Olympians, Sykes is a major supplier to the club and school rowing community.