Ford factory site could be boon for North Geelong property
A news eight-year lease to a national brand tenant is the key to this high profile North Geelong retail investment.
But the wildcard for investors is how much the future direction of the Ford precinct will impact the retail strip between Separation St and The Boulevard, Darcy Jarman listing agent Tim Darcy said.
The 2075sq m retail space at 312 Melbourne Rd, North Geelong has a 34m frontage on a 3167sqm landholding with 21 car parks and offers a passive investment opportunity, Darcy says.
Commercial Insights: Subscribe to receive the latest news and updates
“The covenant and the location are key here.,” he says.
“That precinct is very strong, as we saw with the recent sale of Godfreys up on the corner of The Boulevard and Melbourne Rd.”
In that instance, an investor paid a 53% premium to secure the 3883sqm site for $4.21 million.
Darcy says Sydney Tools is paying $250,000 a year gross rent, with annual 3.5% reviews.
“We’re expecting the price will sit around $3.5 million-plus,” he says.
The Melbourne Rd precinct has a host of national brands.
“You’ve got a number of strong showroom tenants and national brands on that strip between the Separation St bridge and The Boulevard, there is good strength in the profile of tenants,” he says.
The other wildcard in the precinct is the Ford site, Darcy says.
“It’s a substantial site and it’s iconic in its nature as well,” he says.
“Obviously we don’t think it will be an industrial use, it will be a converted nature, whether it’s commercial or semi-commercial.
“It’s hard to say, but it’s got the scope and profile of the Federal Mill, I suppose.
“I think that could be quite exciting for that whole precinct, it could activate it with a new amount of activity,” Darcy says.
Offers for 312 Melbourne Rd, North Geelong, close November 22 at 4pm.
This article from the Geelong Advertiser originally appeared as “Ford factory site is wildcard for high profile North Geelong investment property”.