Melbourne investor cleans up with Geelong Godfreys site

A Melbourne investor has paid a 53% premium on a prominent North Geelong retail site, punting on the capital growth potential surrounding the Ford factory site.

The buyer paid $4.21 million for the 3883sqm property at 484 Melbourne Rd, North Geelong, at a portfolio auction in Melbourne.

Originally built as a Sizzler restaurant, the building has been home to vacuum cleaner retailer Godfreys for many years.

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Allard Shelton agent Joseph Walton says the reserve price was $2.75 million.

Walton says the capital growth potential of the development site attracted strong interest from investors.

“They’ve got a lot of confidence in Geelong, with Bunnings next door and the I think the State Government investments in Geelong has attracted a lot of investors into the market,” Walton says.

The site has been home to Godfreys for many years, after starting life as a Sizzler restaurant.

“I think the broader investment market has seen Geelong as a pretty good place to invest.

“With the Ford complex over the road, I think something is going to be done with that in the near future that will be something better for the area.”

Walton says the property attracted a lot of interest from Melbourne investors, though there was also a lot of activity from Geelong buyers as well.

Godfreys’ $170,000 a year lease on the site expires in 2021.

Godfreys $170,000-a-year lease expires in 2021.

The properties were being sold by the Cohen family, who through Godfrey Cohen co-founded the vacuum cleaner retailer with now 100-year-old owner John Johnson more than 80 years ago before selling out to private equity firms Pacific Equity Partners and Unitas Capital for about $300 million in 2006.

After buying back the majority of business with $100 million in 2011, Johnston bought out the remaining shareholders the ASX-listed company for $13 million this year, through his family-owned investment company Arcade Finance.

Walton says the property has huge development potential, using three street frontages stretching some 147 metres, subject to council approval.

The Cohen family previously sold Geelong’s Bright & Hitchcock building for $7.52 million in 2017.

This article from the Geelong Advertiser originally appeared as “North Geelong sellers clean up as Godfreys auction sets sizzling result”.