Bupa Dental sets Geelong CBD record at auction
Auctioneer Paul Tzamalis calls bids at 118-120 Ryrie St, Geelong. The property sold for $3.83m.
A record sale price for a commercial property leased to a dental surgery is a vote of confidence in the future of Geelong’s central business district and the activity of the council and prominent developers to improve it.
A Melbourne private investor paid $3.83m for the tenanted investment at 118-120 Ryrie St securing a $500,000 premium above what the sellers were hoping for at Friday’s auction.
Darcy Jarman Geelong agent Andrew Prowse said the sale set a land value rate of about $15,000 a square metre for the property, which has secure lease to Bupa Dental returning more than $175,000 a year, plus GST.
The property was on the market at $3.325m.
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Bupa Dental holds a lease with options until 2041 on the property at 118-120 Ryrie St, Geelong.
“I don’t think there’s been any sales in and around the Geelong CBD of that level,” Mr Prowse said.
“That sort of money on a yield of 4.5 per cent is an incredible outcome for the vendor and a credit to their hard work.”
Mr Prowse and co-director Tim Darcy were conjunctional agents with Fitzroys’ Chris Kombi and Lewis Waddell.
The sale ends Wizel Property Group’s project to reposition a conglomeration of properties on Ryrie St and Wright Place bought in 2022.
“It’s been a three year journey for them when they took a punt, being a Melbourne group, to purchase four properties,” Mr Prowse said.
“It took a lot of time and effort to get the result and they were duly rewarded,” he said.
The auction a big crowd, with a number of potential interstate and overseas bidders on the phone or online.
The Geelong home to Bupa Dental was described as the best medical freehold investment property offered in the CBD.
Auctioneer Paul Tzamalis calls in front of a busy crowd in Ryrie St.
“We’re seeing confidence from people outside Geelong seeing the value here, seeing that they can buy in key locations, below replacement cost,” Mr Prowse said.
“In today’s instance, you can take an international tenant with you as well. It was a no-brainer for this group to purchase it, which is a Melbourne-based investor.”
The sale is another vote of confidence in the future health of Geelong’s CBD, which is still showing the signs of an ailing district.
“The population growth and all the noise around our city as a whole is one of the drivers for today’s outcome,” Mr Prowse said.
“That’s people outside our CBD understanding the flow-on effects from residential growth and what that gives the commercial arm.
“But all we’re seeing what’s happening in the CBD at the moment, with what (Geelong mayor) Stretch (Kontelj and co are doing at head office, these things are helping the confidence.
Bill Votsaris’ Batman Group is behind the redevelopment of Lloyds Corner on Moorabool St, Geelong.
Workers are busy behind scaffolding as the Hamilton Group redevelopment of the Bright and Hitchcock building gets underway in Moorabool St, Geelong.
“People are reading about them, people are walking the streets and seeing what Cam Hamilton is doing, seeing what our key property holders are doing and understanding that the prices that have been our CBD prices for the past five, 10, 15 years are not going to be there forever.”
Hamilton Group has two projects alongside Geelong’s mall.
Have completed the exterior of The Regent building on Lt Malop St, the developer has turned to the Brights building on Moorabool St, where workers are busy behind scaffolding.
Managing director Cam Hamilton said there is “definitely some strong interest” from potential tenants for the project.
“It was always our view that you do things on mass and you can make a difference to the end,” he said.
“My view is if the town’s going well, the CBD will go well. We’ve had trouble in the CBD in the past and even the present. But there is faith in the CBD and it will come good.”
Geelong council’s attempts to revitalise the city centre include two-hours free parking in the CBD, and appointing a group to run a Lt Malop St market in the mall.
