07 Nov Eight-year lease to national brand a key to passive investment
A NEW eight-year lease to a national brand tenant is the key to this high profile North Geelong retail investment.
But the wildcard for investors is how much the future direction of the Ford precinct will impact the retail strip between Separation St and The Boulevard, Darcy Jarman listing agent Tim Darcy said.
The 2075sq m retail space at 312 Melbourne Rd, North Geelong has a 34m frontage on a 3167sq m landholding with 21 car parks and offers a passive investment opportunity Mr Darcy said.
“The covenant and the location are key here.,” he said.
“That precinct is very strong, as we saw with the recent sale of Godfreys up on the corner of The Boulevard and Melbourne Rd.”
In that instance, an investor paid a 53 per cent premium to secure the 3883sq m site for $4.21 million.
Mr Darcy said Sydney Tools was paying $250,000 a year gross rent, with annual 3.5 per cent reviews.
“We’re expecting the price will sit around $3.5 million-plus,” he said.
The Melbourne Rd precinct has a host of national brands.
“You’ve got a number of strong showroom tenants and national brands on that strip between the Separation St bridge and The Boulevard, there is good strength in the profile of tenants,” he said.
The other wildcard in the precinct is the Ford site, Mr Darcy said.
“It’s a substantial site and it’s iconic in its nature as well,” he said.
“Obviously we don’t think it will be an industrial use, it will be a converted nature, whether it’s commercial or semi-commercial.
“It’s hard to say, but it’s got the scope and profile of the Federal Mill, I suppose.
“I think that could be quite exciting for that whole precinct, it could activate it with a new amount of activity,” Mr Darcy said.