Geelong buyer lands supersite in biggest CBD sale for two years

A local buyer has landed a supersite on the fringe of Geelong’s CBD in what’s been described as the most significant commercial property sale since the Civic Centre car park in 2022.

The 7111sq m property has been unlocked after owners Geelong Bank and gforce Employment and Recruitment combined eight titles at 33-41 McKillop St, 36-40 Lt Myers St and 107 Gheringhap St.

The property was expected to achieve circa $20m through the sale, given recent prices for other development sites within the CBD.

Industry sources suggest it achieved a price close to that mark.

Whether there’s significant development on the block with arterial road frontage depends on the purchaser’s plans, Darcy Jarman selling agent Tim Darcy said.

Mr Darcy said he couldn’t reveal the identity of the buyer, a Geelong private investor, nor the final sale price.

Mr Darcy and Andrew Prowse of Darcy Jarman and JLL’s Capital Markets Victoria team led by Josh Rutman, Mark Stafford and Jesse Radisich were conjunctional agents for the campaign.

The supersite attracted interest from local, Melbourne and interstate parties.

“We received six formal expressions of interest and we ultimately short-listed three parties and it was successfully acquired by a local private investor,” Mr Darcy said.

But he said the quality of the buildings occupying the site meant the purchaser could draw a significant income in the short term while considering a longer-term vision.

“They’re probably not looking to do a lot in the immediate to short term but they obviously have got very much an eye on the future with the site,” he said.

Mr Darcy said the existing office buildings provided a “good haven” for a number of occupants.

“Obviously, whether two vendors stay or move will play out in time,” he said.

“There’s good value in the existing improvements.

“That does ultimately provide the purchaser with the scope to bed it down with some income in the short to medium term.”

Mr Darcy said it was a significant transaction for Geelong.

“No doubt the largest transaction that’s occurred within the city centre this year and probably since the council car park was sold probably 18 months ago,” he said.

Costa Asset Management paid $22.6m for the Civic Car Park at a private auction in 2022, but confirmed it wasn’t the buyer in this case.

“It clearly has a very strategic element to it. It’s going to provide a multitude of options long term in how it could be the redeveloped,” Mr Darcy said.

The flat supersite occupies an elevated position, with potential for view lines over the Geelong CBD, Corio Bay and GMHBA Stadium from future developments, along with frontages to McKillop St, Gheringhap St, Little Myers St and access to Bambra St.