27 Nov 2023
A CBD commercial property spending spree is expected to continue as a line of four freehold titles is offered for sale on Ryrie St.
The buildings stretching from 130-140 Ryrie Street provides a combined landholding of 1448sq m.
The properties are held by Melbourne investment group and are separated into seven individual tenancies, including first-floor space.
All but one of the ground floor tenancies, including a Little Ryrie St car park Vietnamese restaurant, are occupied.
They are expected to entertain strong interest from the market, given recent sales of similar, but smaller properties close by totalled between $3.4m and $4m.
Darcy Jarman agent Andrew Prowse said the properties had been received well in the market, with interest from Melbourne and Geelong-based groups.
Interested groups include owner-occupiers, those looking to reposition the assets and developers, Mr Prowse said
“I suspect what will happen is it’ll be someone looking to reposition the asset that will be the ultimate buyer. Bed it down with some income and then look to do something, a bit of a land bank, for the future,” he said.
“It’s a pretty unique offering in that parcel land and it’s very much underlet with its current income, so a lot of scope to generate a significantly improved financial position for the asset. “That will be undertaken by whoever eventually purchases it, we suspect.”
Repositioning the existing asset could unlock enormous value as the agents said the current rent was less than 50 per cent of the assessed projected market rent.
More than 20 commercial and retail freehold assets have been traded in central Geelong in 2023, netting close to $30m, with the biggest selling in the wake of the state government finalising the Central Geelong Framework Plan which will guide future development within the CBD.
But the small retail nature of many of the freehold titles has been identified as a potential stumbling block holding back the pace of change in central Geelong.
Selling the properties as a combined asset could make it more attractive in the long run, particularly given a planning framework for the CBD allows a 28m potential height limit, which is the equivalent of 8 storeys, subject to planning approval.
“There is plenty of activity in the Geelong CBD and we’re finding that a lot of groups that are inquiring on the opportunities that we’re presenting down here are Melbourne-based buyers and they’re seeing the value there,” Mr Prowse said.
“They’re understanding where prices are at the moment and what they’re likely to trend toward.”
Mr Prowse said the owners saw it as a chance to capitalise on interest in the CBD.
“There’s plenty good news stories there and they felt that it’s time to move the asset onto someone to take it to the next degree. That’s the benefit for someone else to undertake and get that value add.”