Archive for Media Releases

Archive for Media Releases

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.”

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.

Record sale caps off big year

A $115 million deal to sell Geelong’s Transport Accident Commission headquarters capped off a big year for the region’s commercial real estate sector.

The sale of the TAC complex to Centuria Property Funds Limited, a subsidiary of Centuria Capital Group, set a record price for a piece of real estate in the Geelong region.

But sales data from CoreLogic show it was a big year across the commercial sector in 2017.

A Melbourne company backed by Chinese capital paid $25 million in July for an 80ha farm west of Lara capable of being turned into 909 house blocks.

Soaraway Development, a local division of China’s Yucai Group, brought the property at 285 Patullos Rd, Lara that’s within the 389ha Lara West group area that will eventually house 11,600 residents.

Geelong West agency Darcy Jarman sold the property in conjunction with Melbourne firm Gross Waddell.

Two other property deals worth more than $20 million were inked in August, when the Spotlight shopping complex at 14 Breakwater Rd, Belmont, sold for $24 million in an off-market deal, while Lendlease sold off the freehold to its retirement villages.

Lendlease sold the freehold titles to its Abervale village for $22.3 million and Tannoch Brae for $12.5 million. The same month, Whittington’s Eden Park Residential Aged Care site also sold for $10.9 million, the records show.

In Central Geelong, the Mercure Hotel in Gheringhap St became Rydges after a $19.2 million deal to sell the landmark in February.

That was followed in March when the freehold to the Geelong Private Medical Centre sold for $17.8 million.

The Carlton Hotel in Malop St officially changed hands in May, after the Federal Government announced that Techne Developments had won the tender to construct the National Disability Insurance Agency headquarters on the site.

The developer paid $10.8 million for the old pub and surrounding car park. The facade will remain as the nine-storey office complex rises from the construction site this year.

Two supermarkets were traded in 2017, with Highton’s freestanding Woolworths complex selling at auction fpr $12.43 million.

A Melbourne investor secured the Highton Village anchor ahead of three other bidders.

Public auction was also used to sell the freehold to St Leonards’ IGA supermarket in May.

The centre was knocked down for $5.625 million.