Multiple use in redevelopment

RESIDENTIAL dwellings could form the first floor of a potential redevelopment of this long-term Belmont retail strip listed for sale.

With the forthcoming auction of 132A and B and 134 High St, Belmont, the selling agents are tipping a multi-level redevelopment with residential topping the address will be on the cards.

Darcy Jarman, Geelong West, agent Tim Darcy said that the 532sq m parcel had a variety of options open to buyers looking at redevelopment.

“It provides a lot of flexibility to amalgamate titles, realign the boundaries and hive off the travel agent,” he said.

“There’s heaps of flexibility to set up the redevelopment.

“The incumbent tenants have been there for a considerable period of time, particularly the news agency and hairdressing salon – well in excess of 20 years – and are occupying the property on a monthly tenancy.

“That’s because there’s enormous scope for redevelopment of the site that contains those two tenancies.”

Mr Darcy said Geelong Travel, occupying 134 High St, had a long-term lease in place, with another five years of guaranteed income.

Both sets of leases have flexibility, giving buyers time to find the best-suited development.

“The buildings are older and somewhat tired, and given the structure of the leases it’s ideal for a speculative developer to buy the property with an income and work through the process to engineer a value-add,” Mr Darcy said.

“When the time comes, you’ll be presented with the perfect opportunity.”

They currently return $62,593 a year in rent. The Advertiser believes the properties could fetch more than $1.2 million at auction.

Two other retail properties in High St sold for a similar amount in the past year.

“Ultimately, you’d look at doing something over two levels, where the A-grade (street level) is retail, semi-retail or commercial, and the first level commercial or residential,” Mr Darcy said.

“High St is following Pakington St, Geelong West. The older demographic is moving out and the younger, more vibrant demographic is moving in.

“They’re open to the kind of homes that are close to services and retail, it’s becoming popular so there’s a fair bit of flexibility on what you might be able to get at the other end.”