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.