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High St draws investors for better returns

· March 18, 2020

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.

Categories : News

Belmont investors called to bank on Bendigo

Posted by Antonella Posterino

· February 19, 2020

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.

Categories : News

Leader of the Pak

Posted by Antonella Posterino

· February 19, 2020

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.

Categories : News

Big appetite for rare river end offering

Posted by Antonella Posterino

· January 22, 2020

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.

Categories : News

Prime Spot for Development

Posted by Antonella Posterino

· November 14, 2019

A LARGE residential block with approved plans for an eight-dwelling development has been listed for sale in Highton.

The 1705sq m property at 45 South Valley Rd is scheduled to be auctioned on November 23 with price hopes of $11 million to $1.2 million.

Permits are in place for the medium-density development, which can replace the existing weatherboard house on the property.

Darcy Jarman, Geelong West selling agent Tim Darcy said the development approval allowed eight single and two storey, two and three-bedroom apartments on the property.

The block is close to Highton Village, schools and parks.

It won’t be the first of Highton’s original big blocks to be the target of developers, with Geelong builder Biscan Developments completing a complex of eight townhouses at 114 South Valley Rd.

“Given where it is and what it is with the DA in place, there is a pent-up level of demand for these smaller type amenities.” Mr Darcy said. “They’re a more convenient, low-maintenance way of living.

He said buyers could consider other developments for the site, including a medical or childcare centre.

“It’s on the doorstep of Highton shopping centre and it’s easy to get to Waurn Ponds shopping centre,” he said.

“‘It’s a pivotal spot for major amenities and a whole heap of other recreation.”

He said the vendor obtained permits for the development but decided not to proceed.

It is the second development site currently offered in the neighbourhood.

A 9410sq m property at 2 Morven Court occupies a general residential zone 2 and has price hopes of $3 million.

Categories : News

COFFEE CULTURE’S INDUSTRIAL EXPANSION

Posted by Antonella Posterino

· November 6, 2019

GEELONG workers’ craving for great coffee and good food is creating a niche for cafe operators in the city’s industrial estates.

Darcy Jarman, Geelong West agent Tim Darcy said the city’s transition from manufacturing to a service economy is driving the trend, as more commercial and warehouse properties open for business in areas like Breakwater and Drysdale, where two food-based investments go to auction next week.

The property at 1/6-10 Apparel Close, Breakwater, goes to auction on November 14 at noon.

Meanwhile, 1/34 Murradoc Rd, Drysdale will be auctioned on November 15 at noon.

The former is leased to Cafe Palat on a new three-plus-three year $27,012 net lease expiring in 2025, while Ground Zero at Drysdale is leased to 2023, generating $29,7378 a year.

“They present a really good opportunity for smaller investors or self-managed super funds,” Mr Darcy said.

“They’re in good locations, good quality buildings and have tenants in situ for a while”.

Both properties are priced in the $500,000 to $550,000 range, making them affordable investments with good returns.

The converted clear-span warehouses are in Industrial 1 and Commercial 2 zones.

Categories : News

Top price for Pako property

Posted by Antonella Posterino

· October 9, 2019

THE biggest price ever paid for a commercial property on Newtown’s Pakington St has underlined the investment strength of the inner Geelong shopping strip.

A Geelong investor paid a strip-record $2.29 million at auction for the corner property containing Newtown’s pharmacy and a fashion boutique in the river end village.

The buyer was one of five bidders to raise a hand at the auction of the 411sq m property at 322 Pakington Street.

The rare opportunity arose as executors acting for the estate of the owners disposed of the asset, which had been held for about 50 years.

The sale generated a 3.45 per cent yield, calculating the high sale price and $79,000 annual rental income from long-term tenants Peak Pharmacy and clothing retailer Mayfield on secure leases expiring in 2028.

Darcy Jarman, Geelong West selling agent Simon Jarman said he had been quoting in the high $1 million range throughout the campaign, with buyers taking it further.

“It just goes to show the strength of the location, tenants, a corner — it had it all,” Mr Jarman said.

“As we expected, given the location and the quality of the tenants,” he said.

“It had extra land at the back that long term is going to become a terrific development site.”

Newtown’s river end shopping strip has a strong commercial property sector.

“As we expected, given the location and the quality of the tenants,” he said.

“It had extra land at the back that long term is going to become a terrific development site.”

Newtown’s river end shopping strip has a strong commercial property sector.

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

CoreLogic records show the sale price was more than double the $1 million achieved three years ago for the property next door, which had been home to wine seller Randall’s The Wine Merchant until 2018, and eclipsed the $2.2 million price tag at 357 Pakington St.

Mr Jarman said recent interest rate cuts had lifted the profile of Geelong’s commercial property sector.

“Demand has increased for good investment properties that well located in such strips.

“In general, anything that is well located with good tenants and secure leases is now extremely well sought after.”

Categories : News

National tenants make a prime opportunity

Posted by Antonella Posterino

· September 11, 2019

LONGSTANDING lease agreements with national tenants will bankroll a buyer’s investment in a pair of prime industrial properties which go to auction in September.

The pair of impressive tiltpanel warehouse showrooms are occupied by Midas and Nisbets on long, secure leases, giving buyers the security of a regular income stream.

The warehouses at 9-11 Curtis St, Belmont, are about 10 years old and occupy a 1378sq m site that occupies a space adjoining Settlement Rd, where rear access is also provided.

Darcy Jarman, Geelong West agent Simon Jarman said it was no surprise that interest in the property has been strong ahead of the September 18 auction.

“It’s an exceptionally well located property in an industrial and commercial location only a few kilometres outside of the CBD,” he said.

“It’s as good as you’ll get from an industrial investment point of view, given that location has become a commercial location.”

The property is central to a thriving commercial-industrial hub, with neighbouring national brand businesses including Kennards Hire, Anaconda, Clark Rubber, Spotlight and Mercedes Benz.

Price hopes are in the low $2 million range.

The property offers a total income of $127,000.

A large apron surrounding the property has nine on-site car parks.

Both warehouses are in excellent condition, comprising open-plan warehouse areas, plus office/reception, disabled toilet and kitchenette areas.

Categories : News

Primo Pako St position

Posted by Antonella Posterino

· August 27, 2019

NATIONAL retailers are tipped to fight for the first chance in years to secure a large tenancy in the heart of Pakington St after a blue chip commercial property netted more than $3 million.

An investor paid $3.21 million for the 382sq m freehold property at 196-198 Pakington St, Geelong West, which is home to Murphy’s Newsagency.

It’s the biggest price paid for a single retail tenancy in the heart of the strip between Hope and Weller streets.

Just two retail properties have netted more on Pakington St — $4.07 million last September for the former V&R fresh food market, which occupies more than 2000sq m at 5-7 Pakington St, and the Pakington Village complex, which sold for $7.9 million in 2016, according to CoreLogic.

Darcy Jarman, Geelong West agent Tim Darcy said about 200 people watched the auction, which had attracted significant interest from local
and Melbourne buyers.

Yet only two parties participated after a $2.5 million opening bid stunned the crowd.

“We got a very aggressive opening bid of $2.5 million and that particular party, together with another party, fought it out until we knocked it down,” Mr Darcy said.

The agents had suggested the property could sell for between $2.5 million to $2.75 million during the campaign, but given the significant
interest a $3 million-plus sale was possible.

“I think that given all due credence to the buyer segment in the marketplace, they saw it there as well.”

The property has been held by the newsagent’s owners since 1979.

Mr Darcy said a hunt for new tenants would start soon, while the newsagency relocates to the opposite side of Pakington St in spring.

“It will create an exciting opportunity for the strip,” he said.

“For a lot of the national and multinationals to get a foothold in the heart of Pako in a retail space of 350sm is very rare. You can’t find it.

“It’s a very similar situation to Gazman across the road. That opportunity hasn’t been created in this strip since Gazman went in about 20 years ago.”

The average-sized Pakington St retail tenancy leased in the past year was 112sq m.

“A lot of retail is at that level, but the bigger and more dominant retailers need more space than that. Your 350sq m footprints in your stronghold areas are very difficult to find.”

Categories : News

Wholesale food service distributor licks lips over North Geelong warehouse site

Posted by Antonella Posterino

· August 7, 2019

A SUBSIDIARY of listed wholesale food service distributor BidFood has secured potential future premises for its Geelong operations in a deal speculated to be worth about $3 million.

The company emerged as the buyer for the 7000sq m industrial warehouse facility at 111-121 Mornington St, North Geelong.

Darcy Jarman selling agent Tim Darcy said the property was leased to Cleanaway, which is paying a net annual rental of more than $178,000, with a lease expiring in June, 2021.

“We’ve ended up selling it to a potential end-user, a subsidiary to BidFood, who are a food-related business, a public company out of Sydney,” Mr Darcy said.

“With the growth of Geelong they needed to get into a higher grade level of amenity to what they’ve currently got in this region, so it has provided them with the opportunity to do so,” he said.

“There’s a lease in place until June 21, so they’ve bought it with a long-term view.”

The property has more than a 100m of frontage to Mornington St, which has easy access to the Princes Highway near Separation St.

The site contains two warehouses with a total building area measuring 3052sq m, plus a canopy of nearly 700sq m.

During the campaign Mr Darcy put price expectations broadly between $2 million and $3 million.

Categories : News

Newsagency move opens the door to rare retail auction on Pakington St, Geelong West

Posted by Antonella Posterino

· July 31, 2019

GEELONG West’s Murphy’s Newsagency is on the move, creating a multi-million dollar opportunity in one of the best retail positions on Pakington St.

The newsagent is preparing to relocate in Pakington St later this year, precipitating the most highly-anticipating commercial auctions in Geelong West in some time when 196-198 Pakington St is offered on August 23.

Price expectations could be above $2.5 million for the 385sq m commercial property, which has been held by the newsagent’s owners since 1979.

The most recent comparative sale on the block between Weller and Hope streets occurred in 2011, when a larger property that’s home to Geelong Fresh Foods sold for $3.2 million, CoreLogic records show, though it’s not clear whether it traded on the open market.

Darcy Jarman selling agent Tim Darcy said the location was the pivotal focal point of Pakington St.

“As much as Pako is fairly broad in its spread, between Weller and Hope is the pivotal focal point, stretching perhaps to Albert St and maybe the NAB as the post office sits there, but it’s right in the main thrust,” Mr Darcy said.

Surrounding businesses include ANZ Bank, Baker’s Delight, Geelong Fresh Foods, Dan Murphy’s and Gazman, while the Geelong West library is also nearby.

“We haven’t seen a property between Hope and Weller St become available since Brown’s Drapery, which has become Gazman, which was probably 20 years ago,” he said.

“It’s just so tightly held. With the pedestrian crossing it’s as good a location as you’re going to find.”

The property will be auctioned with vacant possession, giving the owner occupiers or investors a 385sq m site with dual street access.

Two titles provide flexibility in using the existing building or redeveloping, subject to council approval, Mr Darcy said.

He said the projected annual rental for the property as-is would be up to $150,000.

“It’s as strong as you’ll get in any strip location we have within Geelong by virtue of where it is and what it is,” Mr Darcy said.

It will be auctioned on August 23 at noon.

Categories : News

New life for old Ford site

Posted by Antonella Posterino

· June 11, 2019

GEELONG’S busiest commercial strip stands to benefit as potentially thousands of people return to work at the old Ford site over the next few years, a leading real estate agent says.

Darcy Jarman agent Tim Darcy said the Ford site’s new owners Pelligra’s plans to create the Fortek Geelong precinct on the old factories would be positive for the Melbourne Rd strip north of Separation St, which he said was Geelong’s busiest in terms of daily traffic flow.

Mr Darcy’s comments follow the sale of a North Geelong warehouse to a local business and a leading Melbourne motorcycle parts retailer signing a lease to open its first Geelong store.

Mr Darcy said there’s clearly now a vision for the transformation of that site, with Pelligra’s long-term view to its investment a positive for business activity in the northern corridor.

“To think you’ve got a major manufacturing facility that’s redundant on the main arterial road is not ideal,” he said.

“The fact that it’s going to be transformed and have a blend of probably commercial-type business activity and some industrial and warehousing or semi-industrial warehousing is positive for the area. It will reposition and consolidate that area.

“We’ve already seen the successful transformation of the Federal Mills in Mackey St, so these things can work in that location,” he said.

“It will generate a significant number of people going to that site on a daily basis because there will be a lot of different businesses in that precinct. It will help Melbourne Rd.”

Owners of a North Geelong business have started to renovate a warehouse a 308-310 Melbourne Rd after purchasing the property recently.

The 2295sq m property sold after a short campaign in deal the Advertiser understands was worth around $1.5 million.

Antiques emporium How Bazaar recently relocated to Colac from the site.

Mr Darcy said the main road position was a motivating factor for the buyers.

Meanwhile, motorcycle parts retailer AMX Superstores has signed a five-year lease on a warehouse at 385 Melbourne Rd after furniture retailer Oz Design relocated to the Corio homemaker centre.

Leedwell Property agent Tom Perkins said AMX was attracted to the strip for its array of tradie and adventure-based retailers, including Bunnings, Sydney Tools and Ironman 4×4. AMX will take up a position on the corner of Cowie St.

“We have seen a maturing in the Geelong marketplace with traditional homemaker retailers such as Oz Design moving to the homemaker centres where there is a critical mass of like-minded retailers, much like we are seeing tradie-based retailers creating a cluster on the highway,” Mr Perkins said.

The North Geelong Ford site will be a mixed-use site for commercial, industrial and ancillary uses, understood to be consistent with its current zoning.

The new owners told the Advertiser the first stage is expected to accommodate up to 1500 workers in the next three years.

The Princes Highway site is currently home to advanced engineering firm Marand and Danish wind energy giant Vestas, which has based a turbine assembly operation there.

Categories : News

Archive for News

Archive for News

High St draws investors for better returns

Belmont investors called to bank on Bendigo

Leader of the Pak

Big appetite for rare river end offering

Prime Spot for Development

COFFEE CULTURE’S INDUSTRIAL EXPANSION

Top price for Pako property

National tenants make a prime opportunity

Primo Pako St position

Wholesale food service distributor licks lips over North Geelong warehouse site

Newsagency move opens the door to rare retail auction on Pakington St, Geelong West

New life for old Ford site

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