Melbourne investor beats queue to purchase Geelong Taxi Network HQ

A North Geelong warehouse complex has set a strong yield after selling to a Melbourne investor.

The 1840sq m industrial site at 10-14 Roseneath Street, North Geelong, was traded after an extended campaign impacted by the COVID lockdowns.

Darcy Jarman, Geelong West agent Tim Darcy said the investor had previously purchased assets in the region.

Mr Darcy said the campaign was constrained from dealing with potential buyers from outside Geelong once the COVID lockdowns were introduced.

10-14 Roseneath Street, North Geelong is home to long-term tenant Geelong Taxi Network.

But interest built in October once buyers could see an end to Victoria’s hard lockdown.

“We ended up with significant activity on that property in the past month leading to it being sold,” he said.

Mr Darcy said the sale netted a yield of around 6%.

The property has a 46 metre street frontage.

The Addy understands the property sold for around $1.85 million.

The property has a strong cashflow in place, with a $112,000 annual rental on a new five-year lease with two more options to Geelong Taxi Network.

“They’ve been in that property for over 20 years, so they’ve got their whole operation, their dispatch, admin, workshop maintenance, and the collection and pick-up points for their drivers,” he said.

Geelong Taxi Network has a long-term lease in place.

“They signed a new lease that commenced back in December last year for five years with further options. It’s a well-located property, a well presented property.”

The property has a 46m frontage to Roseneath Street, with 1330sq m of office, warehouse and workshop floorspace, plus a mezzanine.

This article from the Geelong Advertiser originally appeared as “Strong rent drives buyer to North Geelong transport hub”.