North Geelong freight depot delivers strong auction result
Investors are returning to the safety of property during the COVID-19 pandemic as five buyers contested an industrial complex at a North Geelong auction last week.
A mix of investors and owner-occupiers competed for the 3613sq m property at 11-13 Morgan St, North Geelong, which sold for $1.3 million.
Darcy Jarman, Geelong West agent Simon Jarman says bidding opened at $800,000 and quickly accelerated to $1 million, where two buyers — the investor and an owner-occupier — closed out the auction at $1.3 million.
Jarman says the property sold at a 5.75% yield, based on the annual rental income.
The property contains a versatile 1200sq m industrial facility that is presently home to transport company KD Freight Services, providing a $75,000 rental income for the first year.
“KD Freight had a 12-month lease in place and then they were looking at potentially move out into something larger,” Jarman says.
The building has two container height roller doors with 900sqm of warehouse space and 300sqm of office space and amenities.
11-13 Morgan St, North Geelong, sold for $1.3 million at auction.
11-13 Morgan St, North Geelong, sold for $1.3 million at auction.
“It was a really good sign of strong activity given we’re in middle of a COVID-19 pandemic,” Jarman says.
“It was strong bidding interest throughout the whole campaign.
“With interest rates at an all-time low it’s not surprising that we saw this type of activity.”
This article from The Geelong Advertiser originally appeared as “North Geelong: Freight depot delivers immediate income for investors”.
