Future redevelopment looms for South Geelong property
A Western Victorian investor is tipped to wait before repositioning more than 9000sq m of South Geelong industrial land for a modern commercial-industrial precinct after securing the property last week.
The 9232sq m property at 17-27 Wood St sold after an expressions of interest campaign drew 13 offers from Geelong, Melbourne and regional Victorian buyers.
Darcy Jarman Newtown agent Tim Darcy said the property, which neighbours Backwell IXL’s South Geelong headquarters, generated an annual rental income of more than $244,000 from six tenants.
Mr Darcy said the sale had exceeded the $3.25 million to $3.5 million price range.
“It was an opportunity for somebody to buy with a cash flow with a view to value add through probably some redevelopment to a complete new development at some later stage when the property becomes unencumbered,” he said.
“But it’s encumbered with various leases for a period of time.
“It was bought by a Western District investor with a view to deal with the income position of the property in the short to medium term but probably with a view to repositioning the asset through redevelopment.”
Mr Darcy said a redevelopment would most likely be of a commercial or light-industrial nature, as office/warehousing or showroom/office/warehousing.
“It could be suited to smaller or could be suited to larger format,” he said.
“Given where it was situated and the lack of land in that area, it drew a lot of interest.”
A local professional emerged from five bidders at auction to secure a 325sq m central Geelong property within the city’s hospital precinct.
The brick veneer character home at 49 Bellerine St carried a residential growth zoning but had existing permission to operate as an allied health consultancy.
Mr Darcy said it was sold with vacant possession.
“It was going to be either an investor or an owner-occupier, we were quoting a price range 750,000 to $825,000 and sold it under the hammer for $960,000,” he said.
Mr Darcy said the buyer had a view to occupy the property, which is close to Geelong’s University Hospital.
“It’s freehold title in Geelong city centre and it had two street frontages, so it had a bit going for it and it will need money spent on it to,” he said.
“But as much as it might look like a strong price, to be able to achieve that for a freehold in Geelong at the moment, there is still value in it but it was a solid outcome.”