Newtown pharmacy breaks Pakington St record

The corner property has an envelope of vacant land facing a rear street.

The biggest price ever paid for a commercial property on Newtown’s Pakington St has underlined the investment strength of the inner Geelong shopping strip.

A Geelong investor paid a strip-record $2.29 million at auction for the corner property containing Newtown’s pharmacy and a fashion boutique in the river end village.

The buyer was one of five bidders to raise a hand at the auction of the 411sqm property at 322 Pakington St.

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The rare opportunity arose as executors acting for the estate of the owners disposed of the asset, which had been held for about 50 years.

The sale generated a 3.45% yield, calculating the high sale price and $79,000 annual rental income from long-term tenants Peak Pharmacy and clothing retailer Mayfield on secure leases expiring in 2028.

Pakington St, Newtown, is a busy retail strip near central Geelong.

Darcy Jarman, Geelong West selling agent Simon Jarman says he had been quoting in the high $1 million range throughout the campaign, with buyers taking it further.

“It just goes to show the strength of the location, tenants, a corner — it had it all,” Jarman says.

“As we expected, given the location and the quality of the tenants,” he says.

“It had extra land at the back that long term is going to become a terrific development site.”

Newtown’s river end shopping strip has a strong commercial property sector.

Auctioneer Raoul Salter called the auction at 322 Pakington St, Newtown. Picture: Glenn Ferguson

In 2018, the nearby site of the suburb’s post office sold for $930,000 at auction, eclipsing price hopes by $300,000.

CoreLogic records show the sale price was more than double the $1 million achieved three years ago for the property next door, which had been home to wine seller Randall’s The Wine Merchant until 2018, and eclipsed the $2.2 million price tag at 357 Pakington St.

Jarman says recent interest rate cuts had lifted the profile of Geelong’s commercial property sector.

The buyer, left, showed little emotion throughout the auction. Picture: Glenn Ferguson

“Demand has increased for good investment properties that well located in such strips.

“In general, anything that is well located with good tenants and secure leases is now extremely well sought after.”

This article from The Geelong Advertiser originally appeared as “River End record set as Pakington St retail property breaks $2m”.