Author Archive for Antonella Posterino

Author Archive for Antonella Posterino

Good medicine with pharmacy

A LANDMARK pharmacy on a high-profile Belmont corner has sold for more than $2.8m after an auction.

The strong fundamentals behind the 195sq m property at 145 High Street encouraged buyers to bid hard for tenanted investment being offered for the first time in 35 years.

A Sydney investor secured the property for what the Addy understands is a sub-4 per cent yield.

Two parties contested the auction, which rose from a $2m start to $2.8m in 50 seconds. Auctioneer Raoul Salter could not entice further bidding and passed the property in.

Darcy Jarman agent Tim Darcy negotiated the sale immediately after. He would not disclose the higher price.

Mr Darcy said the campaign generated more than 70 inquiries and the crowd included a number of buyers looking to procure it.

“There was quite a few there that didn’t get to bid because it went in a very manic fashion in $100,000 increments,” he said.

The pharmacy had operated since 1986, he said.

“It’s got a proven track record and it’s attached to a medical centre with a further pathology and radiology clinic next door to that.”

The property generates an annual income of $113,417.

The sale price is higher than recent High Street transactions, including $2.5m for the former Hungry Jack’s site, which has become home to Daniel’s Donuts, and $2.16m for the home to Belmont’s Bendigo Bank branch. Both properties have a larger footprint.

Why a two-storey office block in Geelong is better than a bank

A TWO-STOREY office building in central Geelong is better than a bank at the moment, given the current low savings interest rates.

The well-presented building with 761sq m of floor space is being offered at auction as a freehold investment opportunity.

Darcy Jarman, Newtown, agent Tim Darcy said the 600sq m property at 15 Little Ryrie Street, Geelong, offered buyers a set-and-forget opportunity for the short to medium term.

Mr Darcy said the freehold property was in an activity centre zone, which presented a long-term value opportunity.

Not-for-profit disability, ageing and community service provider GenU has recently signed a new five-year lease, with an option for an additional year, providing annual rent of $135,000, with fixed 3 per cent annual increases.

Mr Darcy expects the property will sell in the high $2m range.

The property is on the north side of Little Ryrie Street, next to Centrelink and the Australian Taxation Office, and close to St John of God Hospital.

Surrounding development comprises predominantly established commercial premises of mixed age and construction, and secure residential apartment complexes currently under construction.

“It’s about as good as it gets as a set-and-forget investment in the short to medium term,” he said.

Mr Darcy said interest was solid, with local and external buyers.

“They’re very much looking at a secure passive investment, with a secure recurring income,” he said.

“First and foremost, they’re looking for somewhere to park money and get a return on their capital.”

Mr Darcy said the freehold property was serviced by two street frontages to Little Ryrie Street and Cuzens Place.

The 604sq m land component has potential long-term redevelopment scope, which is enhanced by its freehold status.

The original part of the building is double brick, with a rear extension completed six years ago with a concrete tilt panel construction.

The building presents in excellent condition throughout and comprises open-plan office space, partitioned offices, meeting rooms, training rooms, a kitchenette and toilet/ bathroom facilities.

Undercroft carparking and a storage area at the rear includes eight car spaces.

The property goes to auction on March 31 at noon.

Period holdover is a historic opportunity

THE last remaining house on a Geelong CBD street has been listed for sale as a rare development opportunity.

The ornately decorated weatherboard period home at 88 Brougham Street is being sold by expressions of interest, closing March 25.

It is one of four properties on the block between Bellerine and Yarra streets that has so far outlasted several Geelong building booms.

The house has been dwarfed by development along the waterfront, with the La Cabine office building to its west, the City of Greater Geelong corporate office building and carpark appearing in the late 1980s and the Promenade Tower apartments later.

Darcy Jarman, Newtown listing agent Tim Darcy said the property had become available for the first time in more than 100 years as part of a deceased estate.

It is located within Geelong’s broad activity centre zone, offering both unparalleled views across Transvaal Square parkland to the waterfront and close access to the city’s main shopping precinct.

The activity zone provides buyers with enormous scope for redevelopment.

“Clearly there is a higher and better use for the site, given it’s included in an activity centre zone and it’s got uninterrupted access facing to the north,” Mr Darcy said.

“It’s a really interesting site. Nothing like that has come to the fore in this location for a substantial period of time.”

The property is likely to attract interest in excess of $2m, given the substantial upside that any future development would deliver on the site.

“It’s got an enormous amount of scope in regards to a redevelopment scheme,” Mr Darcy said.

“Whether it be commercial, residential or an integration of both, it’s clearly a fairly dynamic and versatile site.

“I suspect, by virtue of where it is and what it is, that it’s going to command a lot of deep interest.”

The 431sq m property has two street frontages, including a rear laneway entry off Yarra Street. The block is more than 34m deep.

The dwelling presents in a raw condition, retaining many of its original features and characteristics.

Louise Armit is the executor of the estate of her late aunt Elizabeth Backwell, who died last year.

Ms Armit said the house had been in the family for more than 100 years, back to great-grandparents Robert and Marion Williams.

Her grandmother Jessie Williams, who married Albert Backwell, also lived at the house.

Why west hits the investors’ Heights

THE growing popularity and gentrification of the western suburb of Hamlyn Heights has underlined the potential of a key commercial property on Vines Road.

The commercial premises at shops 1 and 2/63 Vines Road sold recently for $1.07m.

The deal realised a 4.5 per cent yield for the seller.

Darcy Jarman, Geelong West agent Tim Darcy said gentrification in Herne Hill, Manifold Heights and Hamlyn Heights had supported the strong result.

The existing tenants had been in place since the shops, on a corner property, were built about eight years ago, Mr Darcy said.

“The rents are pretty modest, so there was a number of local investors that were pretty keen to buy it,” he said.

Vines Road is home to the popular Vallis IGA supermarket. Its owners are rebuilding after a fire at the opposite end of the shopping centre.

“It’s a good little vibrant area that is becoming more active as time evolves,” Mr Darcy said.

The local buyer was seeking a passive investment to add to their existing portfolio.

“It’s got a proven track record in the time it’s been in existence in an area that’s growing and thriving,” Mr Darcy said.

The transaction was completed in the first week of January.

Mr Darcy said the COVID- 19 pandemic had drawn a bigger focus on the region for commercial property investors.

“We’re very optimistic about the immediate to medium term future of Geelong in terms of activity,” he said. “I think that we’ve already been in a relatively strong growth cycle.

“This pandemic has heightened the activity around Geelong and the Bellarine Peninsula and Surf Coast.

“So we’re dealing with a lot of pent-up demand for a raft of different opportunities within the industrial and commercial sector with Geelong at the moment.”

Demand increases for small warehouses

Geelong’s massive population growth has spawned a booming industrial sector amid demand for warehouse space.

The changing shape of our newest suburbs means demand for warehouse and office space in the region’s industrial estates has never been higher.

And property investors and developers have come to the party with a booming construction pipeline.

Projects range from subdividing existing properties to unlocking large tracts of land to build new business parks.

Darcy Jarman, Geelong West agent Tim Darcy said the changing shape of the region’s economy from manufacturing to white collar services preceded the growth in population.

“When you have that level of growth, what happens after the growth in the domestic market is the requirement for ancillary amenities like the retail, commercial and industrial sectors.

“The industrial demand is all coming from warehousing — predominantly from at the small end of the scale but it’s cascading up.”

Mr Darcy said the urban expansion to Geelong’s south has sparked the industrial boom, with 150,000 new residents anticipated by 2036.

But the changing shape of the new suburbs is also driving the industrial sector.

“They’re cottage blocks — they’ve gone away from the conventional blocks that might have been 700 to 800sq m, up to 1000sq m to 1200sq m,” Mr Darcy said.

“So people’s ability to house their trailer, boat or caravan at home becomes increasingly difficult.

“These smaller warehousing is attractive because you can suit various needs and they also suit smaller tradespeople.”

Small businesses were also selecting less conventional locations, incorporating warehousing and free parking into their offices, he said.

“If you look at the projections and what’s in front of it, it’s only starting.”

The development is concentrated in Geelong’s main industrial precincts — Breakwater, South Geelong, North Geelong and Grovedale, with some work also at Moolap and North Shore.

Areas like Heales Road is better for larger format projects, like logistics and distribution, Mr Darcy said.

Investors in the market can bank on good organic value growth with new industrial land suited to smaller warehouses not expected to become available for at least a decade at Armstrong Creek, he said.

Melbourne developer Wilmac, which has 30 years experience in the industrial and commercial property space, recently entered Geelong with a business park comprising 70 office, warehouse and storage units at Breakwater.

The first stage comprising 22 units has opened at Industria, with construction of stage 2 starting this month.

Wilmac director Chris Wilkins said the premier business park had been well received by the market, with owner-occupiers, investors and tenants securing space.

“We’ve watched this market closely over the past few years and felt the timing was right for us to deliver our trademarked Industria brand,” Mr Wilkins said.

Mr Darcy said owner-occupiers and tenants represent a good cross section of Geelong business at the park, while investors were getting returns up to 6.3 per cent.

Strategic plays near arterials

GEELONG buyers have made strategic plays for industrial and mixed use land fronting arterial roads in the city’s southeast.

Local interest placed a higher premium than Melbourne buyers on the sites fronting Portarlington Road, Moolap and Barwon Heads Road, Charlemont.

Darcy Jarman, Geelong West agent Tim Darcy said a local investor secured the home of Corio Waste Management at 41-49 Wills Crescent, Moolap.

The 11,441sq m industrial site had sold at the upper end of the $2.5m to $2.75m quoted price range, Mr Darcy said.

CWM has a new five-year lease with options to 2040.

“It was a secure investment, it was basically a good land bank with cash flow,” he said.

The site is near the eastern end of the planned Geelong Ring Road extension.

Geelong developers paid more than $1.5m for a 200m frontage to Barwon Heads Road at Charlemont.

The strategic nature of the 1.5ha property would become evident through the Marshall precinct structure plan, he said.

“When the plan gets rolled out they will look to develop that site,” Mr Darcy said.

Oakley, Shop 7, 61 Geelong Rd, TORQUAY

– Long lease to global giant Luxottica Group – Oakley Eyewear

– Tenant in occupation since 2001

– Triple net rent of $185,694 pa*

– Strong rental growth: 5% annual reviews

– Recently upgraded fit out

– Prime highway location

* Approx

Unit 2, 151 Bellarine Hwy Moolap, GEELONG

– Building area: 1,300m2*

– Showroom/retail area: 650m2*

– Generous onsite parking for 96 cars

– Superb passing traffic

– Chiller room, freezer room and fridges available

– Rear access loading dock and warehouse/storage

– Zoning: Commercial 2

* Approx.

Lab secures COVID-19 testing centre for up to two years

A DRIVE-through COVID-19 testing centre has ended a long search for a tenant for a landmark corner in Geelong’s inner west.

Australian Clinical Labs has opened the testing centre after signing a 12-month lease, with a 12-month option, on 241 Pakington Street, Newtown.

Darcy Jarman, Geelong West, leasing agent Denham Humphreys said the corner location at Aberdeen Street made it a walk-up start for the pathology firm.

“It’s a very high exposure corner, the amount of traffic that goes past there is amazing.”

The agents were seeking $80,000 a year in rent for the 541sq m property, achieving a price close to that, he said.

“The interest that we had was for the exposure side of things. It was good for Clinical Labs on that front. The access point from either side allowed for drive-through,” he said.

“They’ve set up a marquee out the front, so even if it was wet conditions, it can still be done quite well. They have full signage now, it’s very good exposure for them.”

Mr Humphreys said retail and particularly small warehouse space leasing was operating “surprisingly” well, considering the COVID-19 Stage 3 measures in Geelong.

“The leasing market is still ticking over really well. Surprisingly so. It went quiet during initial lockdown period,” Mr Humphreys said.

“The retail space tends to be moving and we’ve got good movement with warehouses, particularly small warehouses.”

 

7 Palmerston Street, DRYSDALE

– Building Area: 470m2*

– Flexible premises suited to retail, office or hospitality

– Large mostly open plan fit out

– Ability to have separate areas / offerings with 3 entrances

– Abundance of surrounding parking

– Commercial 1 zone

* approx.

Geelong industrial warehouse offers plenty of upside for investors

There is plenty of upside for investors to a Geelong warehouse leased to a national supplier of interior design products, soft furnishing textiles and window furnishing products.

The 1.788ha complex at 20 Apparel Close, Breakwateris leased to Basford Brands on a 10-year lease expiring in 2028.

The property is being offered for sale via an expressions of interest campaign closing August 27.

Darcy Jarman, Geelong West agent Tim Darcy said the long lease offered buyers the chance to grow the investment.

It generates more than $557,000 in rental income a year.

“We think there is going to be good organic growth in the industrial space, given the escalation in demand in the region,” Mr Darcy said.

“So the rent is considered to be at the moment relatively modest. We think there is going to be some good organic growth and upside to the rental in the years to come.”

Mr Darcy said he expected a sale to set a yield around 6 to 7 per cent through the sale.

“It’s very much a rare offering because of the magnitude and scale of the warehouse,” Mr Darcy said.

“Warehouses of this size and scale, as investment grade, items don’t come to the fore very often within our region.

“It is underpinned by a long lease. The tenant has been there for well over 10 years.

“So it’s a long-term lease and it’s a high grade and high quality amenity. It’s excellent in nature in terms of a warehouse amenity.

“It’s got terrific internal high clearance, about 9.6m to the apex internally, supported by an internal office area and associated amenities including substantial on-site car parking.”

The warehouse has 7909sq m of floorspace, including the two-level internal office space.

Built in the 1990s for the Austin Group, Basford Brands now uses the facility as a warehouse depot.

Strategic location drives $5M-plus sale

FUTURE development prospects underpinned strong interest in a strategic South Geelong transport hub that’s sold for well above $5 million.

The long-term home of the McColl’s transport company forms part of the 22,462sq m site that was snapped up by a local investor.

Darcy Jarman, Geelong West agent Tim Darcy said the agency received up to eight different offers for the adjoining properties at 92-96 Wood Tce and 57 Wood St, South Geelong.

They generate an annual rental income of more than $400,000 from tenants McColl’s and Allied Pickfords.

The properties were offered either separately or together as part of an executers’ expressions of interest campaign and Mr Darcy said both options attracted buyers from Geelong and further afield.

“In the end when we shortlisted some potential purchasers that we wanted to deal with, all had an appetite to buy it in one line and that is what happened,” he said.

He could not reveal the sale price but said it was closer to $6 million than $5 million.

Mr Darcy said the combination of established tenants and the chance to unlock the future potential of Strategic location drives $5M-plus sale the large, corner site drove up the value.

The landholding is open to more intense development once the lease agreements expire.

“I think it was a number of things that attracted buyers,” he said.

“The property was very much a strategic site with industrial zoning in that very prominent corner.

“The McColl’s business has been there in some shape or form since 1964, the other tenant has been there about seven or eight years.”

McColl’s holds a three-year lease, with a further five-year term, while Allied Pickfords is 18 months into a seven-year lease, with two further five-year terms.

Mr Darcy said there remained good demand for quality industrial property in Geelong.

“For well positioned, well leased property there is still an appetite,” he said.

The Barwon Tce site comes with a 2090sq m warehouse/depot and wash bays, while the 57 Wood St offers a building area of 2930sq m, plus a canopy.