Growth fuelling developers interest

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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.”