Author Archive for Antonella Posterino

Author Archive for Antonella Posterino

Strategic plays near arterials

GEELONG buyers have made strategic plays for industrial and mixed use land fronting arterial roads in the city’s southeast.

Local interest placed a higher premium than Melbourne buyers on the sites fronting Portarlington Road, Moolap and Barwon Heads Road, Charlemont.

Darcy Jarman, Geelong West agent Tim Darcy said a local investor secured the home of Corio Waste Management at 41-49 Wills Crescent, Moolap.

The 11,441sq m industrial site had sold at the upper end of the $2.5m to $2.75m quoted price range, Mr Darcy said.

CWM has a new five-year lease with options to 2040.

“It was a secure investment, it was basically a good land bank with cash flow,” he said.

The site is near the eastern end of the planned Geelong Ring Road extension.

Geelong developers paid more than $1.5m for a 200m frontage to Barwon Heads Road at Charlemont.

The strategic nature of the 1.5ha property would become evident through the Marshall precinct structure plan, he said.

“When the plan gets rolled out they will look to develop that site,” Mr Darcy said.

Oakley, Shop 7, 61 Geelong Rd, TORQUAY

– Long lease to global giant Luxottica Group – Oakley Eyewear

– Tenant in occupation since 2001

– Triple net rent of $185,694 pa*

– Strong rental growth: 5% annual reviews

– Recently upgraded fit out

– Prime highway location

* Approx

Unit 2, 151 Bellarine Hwy Moolap, GEELONG

– Building area: 1,300m2*

– Showroom/retail area: 650m2*

– Generous onsite parking for 96 cars

– Superb passing traffic

– Chiller room, freezer room and fridges available

– Rear access loading dock and warehouse/storage

– Zoning: Commercial 2

* Approx.

Lab secures COVID-19 testing centre for up to two years

A DRIVE-through COVID-19 testing centre has ended a long search for a tenant for a landmark corner in Geelong’s inner west.

Australian Clinical Labs has opened the testing centre after signing a 12-month lease, with a 12-month option, on 241 Pakington Street, Newtown.

Darcy Jarman, Geelong West, leasing agent Denham Humphreys said the corner location at Aberdeen Street made it a walk-up start for the pathology firm.

“It’s a very high exposure corner, the amount of traffic that goes past there is amazing.”

The agents were seeking $80,000 a year in rent for the 541sq m property, achieving a price close to that, he said.

“The interest that we had was for the exposure side of things. It was good for Clinical Labs on that front. The access point from either side allowed for drive-through,” he said.

“They’ve set up a marquee out the front, so even if it was wet conditions, it can still be done quite well. They have full signage now, it’s very good exposure for them.”

Mr Humphreys said retail and particularly small warehouse space leasing was operating “surprisingly” well, considering the COVID-19 Stage 3 measures in Geelong.

“The leasing market is still ticking over really well. Surprisingly so. It went quiet during initial lockdown period,” Mr Humphreys said.

“The retail space tends to be moving and we’ve got good movement with warehouses, particularly small warehouses.”

 

7 Palmerston Street, DRYSDALE

– Building Area: 470m2*

– Flexible premises suited to retail, office or hospitality

– Large mostly open plan fit out

– Ability to have separate areas / offerings with 3 entrances

– Abundance of surrounding parking

– Commercial 1 zone

* approx.

Geelong industrial warehouse offers plenty of upside for investors

There is plenty of upside for investors to a Geelong warehouse leased to a national supplier of interior design products, soft furnishing textiles and window furnishing products.

The 1.788ha complex at 20 Apparel Close, Breakwateris leased to Basford Brands on a 10-year lease expiring in 2028.

The property is being offered for sale via an expressions of interest campaign closing August 27.

Darcy Jarman, Geelong West agent Tim Darcy said the long lease offered buyers the chance to grow the investment.

It generates more than $557,000 in rental income a year.

“We think there is going to be good organic growth in the industrial space, given the escalation in demand in the region,” Mr Darcy said.

“So the rent is considered to be at the moment relatively modest. We think there is going to be some good organic growth and upside to the rental in the years to come.”

Mr Darcy said he expected a sale to set a yield around 6 to 7 per cent through the sale.

“It’s very much a rare offering because of the magnitude and scale of the warehouse,” Mr Darcy said.

“Warehouses of this size and scale, as investment grade, items don’t come to the fore very often within our region.

“It is underpinned by a long lease. The tenant has been there for well over 10 years.

“So it’s a long-term lease and it’s a high grade and high quality amenity. It’s excellent in nature in terms of a warehouse amenity.

“It’s got terrific internal high clearance, about 9.6m to the apex internally, supported by an internal office area and associated amenities including substantial on-site car parking.”

The warehouse has 7909sq m of floorspace, including the two-level internal office space.

Built in the 1990s for the Austin Group, Basford Brands now uses the facility as a warehouse depot.

Strategic location drives $5M-plus sale

FUTURE development prospects underpinned strong interest in a strategic South Geelong transport hub that’s sold for well above $5 million.

The long-term home of the McColl’s transport company forms part of the 22,462sq m site that was snapped up by a local investor.

Darcy Jarman, Geelong West agent Tim Darcy said the agency received up to eight different offers for the adjoining properties at 92-96 Wood Tce and 57 Wood St, South Geelong.

They generate an annual rental income of more than $400,000 from tenants McColl’s and Allied Pickfords.

The properties were offered either separately or together as part of an executers’ expressions of interest campaign and Mr Darcy said both options attracted buyers from Geelong and further afield.

“In the end when we shortlisted some potential purchasers that we wanted to deal with, all had an appetite to buy it in one line and that is what happened,” he said.

He could not reveal the sale price but said it was closer to $6 million than $5 million.

Mr Darcy said the combination of established tenants and the chance to unlock the future potential of Strategic location drives $5M-plus sale the large, corner site drove up the value.

The landholding is open to more intense development once the lease agreements expire.

“I think it was a number of things that attracted buyers,” he said.

“The property was very much a strategic site with industrial zoning in that very prominent corner.

“The McColl’s business has been there in some shape or form since 1964, the other tenant has been there about seven or eight years.”

McColl’s holds a three-year lease, with a further five-year term, while Allied Pickfords is 18 months into a seven-year lease, with two further five-year terms.

Mr Darcy said there remained good demand for quality industrial property in Geelong.

“For well positioned, well leased property there is still an appetite,” he said.

The Barwon Tce site comes with a 2090sq m warehouse/depot and wash bays, while the 57 Wood St offers a building area of 2930sq m, plus a canopy.

High St draws investors for better returns

Direct property investments in areas like High St, Belmont are making more sense for buyers watching interest rates and share market values wane.

Five buyers contested the home to Bendigo Bank’s Belmont branch at 142-146 High St, which sold for $2.16 million at auction last week, for a 4.64 per cent yield.

Darcy Jarman, Geelong West agent Tim Darcy said interest came from Geelong and Melbourne investors, with a local securing the contracts.

The bank last year exercised a 3-year option on its lease since 2004. It pays $103,500 in rent.

“It’s a big building on a big parcel of land but it’s in a very dominant position,” Mr Darcy said. “It’s right near the corner of Regent St, directly opposite the Aldi car park and only 100m down the road from Coles. So it’s the bees knees in terms of prominence and location within the precinct.”

The sale will augur well for a forthcoming auction of a smaller property at Shop 4, 165 High St near the library.

The 53sq m shop is leased to long-term tenant Yummy Mummy Lolly Shop, which is on a new 7-year lease with a $14,280 annual rent.

It goes to auction on March 26 with $300,000 price hopes.

“This will be for smaller investors, self-managed super funds, because it’s affordable.

“Investors that have got a surplus level of funds in respect to where rates have retreated to and the recent wind back in the capital value in the share market, are still looking for direct property investments, provided they have the right location, the right lease and the right covenant,” Mr Darcy said.

Belmont investors called to bank on Bendigo

WITH Australia’s fifth-largest retail bank as a long-term tenant, there’s a big reason why investors will see this Belmont property has a safe bet.

The 434sq m home to the Bendigo Bank’s Belmont branch at 142-146 High St is being offered for auction in March.

Darcy Jarman, Geelong West agent Simon Jarman said a $2 million price range was being quoted for the property.

“The Bendigo Bank has been there since 2004 so it’s a longstanding tenant and they’ve just exercised a three-year
lease in October last year,”Mr Jarman said.

“But it’s more about High St and the location of that property is in the heart of High St, which is one of Geelong’s premier shopping strips.

“From an investment point of view, a longstanding tenant with a land area of just under 560sq m makes it the perfect investment with some long-term development potential.”

The building offers an open customer service area, secured teller counter and meeting offices at the front, with a lunch room and kitchenette, toilet and storage facility at the rear.

The bank signed a new three by three-year lease on the property in October, 2019.

The Bendigo pays $103,500 rent annually, plus GST, with 2 per cent annual reviews.

The bank occupies a prime position directly opposite the busy Aldi supermarket with Coles and other major banks.

Leader of the Pak

A RECORD price has been set for commercial property in Newtown’s Pakington St shopping strip.

A 775sq m retail property at 313 Pakington St, Newtown, sold for $2.4 million after auction on Friday.

The property was passed in at auction for $2.25 million, selling immediately after to a local investor.

Darcy Jarman agent Simon Jarman and Buxton, Newtown, director Ben Riddle were conjunctional agents on the campaign.

Mr Jarman said it would be a long-term investment for the buyer.

It comes with long-term leases to two tenants, Steampocket Pizzeria and Cafe and Pamper Medical Skin Clinic.

“They will sit on it. Both tenants are longstanding at the property and nothing in the short term will change,” Mr Jarman said.

He said the sale represented a circa 4.5 per cent yield, based on the $110,000 annual rent earned on the property.

It has three street frontages, including the corner of Pakington St and Huntingdon St.

It has topped a clutch of sales in recent years that have highlighted the river end shopping strip’s strong commercial property sector.

The quality of the tenants and the location drove competition for nearby 322 Pakington St, a 411sq m property home to Newtown’s pharmacy and a fashion boutique, when Darcy Jarman auctioned it in October.

A Geelong investor paid a record price to secure the site ahead of four other bidders.

In 2018, the nearby site of the suburb’s post office sold for $930,000 at auction, eclipsing price hopes by $300,000.

Mr Jarman said strong results in the commercial property sector follows from the rise in the city’s residential property market.

“Historically, the residential growth of Geelong has always come before the commercial growth,” he said.

“With the exceptional growth, it’s now starting to flow on to the commercial market with many investors outside Geelong certainly looking at Geelong as a place to invest, now even more than ever,” he said.

Mr Riddle said prior to the auction that the rare opportunity to secure almost 800sq m that provided future development opportunity would drive the demand in the property.

Big appetite for rare river end offering

A RARE commercial property in Newtown’s Pakington St is poised to set a new price record for the premium retail strip.

The freehold premises at 313 Pakington St is tipped to spark strong interest from investors and developers when it goes to auction on February 14.

It presents a chance to acquire a prime corner site of 775sqm in the tightly-held river end shopping precinct.

Price hopes are $2.3 million to $2.5 million for the property, which includes a heritage building and another neighbouring building.

It comes with long-term leases to two longstanding tenants, Steampocket Pizzeria and Cafe and Pamper Medical Skin Clinic.

The listing comes hot on the heels of a record $2.29 million sale in the strip, for a nearby retail premises at 322 Pakington St late last year.

Buxton agent Ben Riddle, who is joint listing agent with Darcy Jarman, Geelong West agent Simon Jarman, said commercial opportunities like the blue chip location were few and far between.

“Obviously it’s rare in that pocket, it’s hard to get a big site of just under 800sqm,” Mr Riddle said.

He said with two buildings and three street frontages, there was scope to further develop the site, subject to council approval.

“Newtown is more tightly held (than the Geelong West end of Pakington St) because there is less development,” Mr Riddle said.

It’s the highest priced suburb in Geelong and Pakington St is a world famous strip.

“And the good thing about having two tenants is that is spreads your risk.”

The property has an annual rental income of $109,923(net) and comes with five rear carparking spaces, accessed off Huntingdon St.

The buildings include multiple reception rooms, treatment rooms, sitting rooms, a kitchen, dining room and outdoor seating/dining area.

Mr Jarman said the fact both the tenants were established businesses added to the appeal for investors keen on a walk-up start.

“It has already attracted interest both locally and from Melbourne from buyers who want to get into the prime location with quality tenants,” he said.

A clutch of sales in recent years have highlighted the river end shopping strip’s strong commercial property sector.

The quality of the tenants and the location sparked a bidding war for nearby 322 Pakington St, a 411sqm property home to Newtown’s pharmacy and a fashion boutique, auctioned by Darcy Jarman in October.

A Geelong investor paid a record price to secure the site ahead of four other buyers.

Demand is also strong for commercial properties in Pakington St’s Geelong West shopping strip where an investor paid $3.21 million last August for 196-198 Pakington St. It had been home to Murphy’s Newsagency.

The auction of 313 Pakington St, Newtown will be on February 14 at noon.

 

 

High life awaits in Torquay

A PRIME in-fill site with planning approval for a rare four-storey development has hit the market in central Torquay.

Two shopfronts and 10 residential apartments are part of the approved permit that would reshape the streetscape at 3 Zeally Bay Rd.

The 809sq m commercially zoned site is within the town centre, opposite Taylor Park and just a few doors down from the foreshore.

Darcy Jarman, Geelong agent Tim Darcy is seeking expressions of interest by December 5, with the price tipped to be around the low $2 million range.

Mr Darcy said planning approval for a four-storey development was almost unheard of in Torquay and offered developers a walk-up start.

He said the proponents had secured the fourth level through VCAT after the Surf Coast Shire originally approved a three-level building on the site.

“It’s a quite unique DA (development approval) because in Torquay historically there has been nothing over two or three levels,” he said.

“There are very few existing, maybe one or two, properties that are four levels.”

The approved plans include eight three-bedroom apartments and two four-bedroom penthouse apartments sitting above two retail spaces, plus carparking.

The two larger apartments would have ocean views and the others a park aspect.

Mr Darcy said the property appealed to both developers looking to run with the plans and those seeking a premium home site in old Torquay.

“The first thing is the geographic location. It’s very much in a pivotal and central part of old Torquay, the part of Torquay that’s pretty sought
after,” he said. “The second part of it is the current DA.

“It presents an opportunity for those that are looking to buy a premium parcel of plan with a DA in place and the ability for some commercial
space and there are eight three-bedroom apartments and two four-bedroom apartments that you can build.”

Only two apartments remain in the neighbouring Zeally One development under construction next door at 1 Zeally Bay Rd.

The three-level building offers a mix of one, two and three-bedroom apartments and ground floor office suites.