Colliers transacts high profile Melbourne Road retail super site in North Geelong.
A significant property at 340-344 Melbourne Road, North Geelong, has been successfully sold off-market for $8,500,000 in a deal managed by Colliers agent Chris Nanni. This vacant property features a 4,750sqm showroom on a 5,560sqm land area.
Known as the “Old Rays Outdoors” site, this high-profile asset offered a rare chance to acquire a substantial site on Melbourne Road, a busy corner location with unique left-in and right-in access, perfect for large format retail.
Chris Nanni, Colliers Sales & Leasing Executive in Geelong, commented, “The sale price reflects a rate on lettable area of below $1,800 per square metre, well below the replacement cost, and this sets the new owners up to drive very compelling returns over the short to medium term.”
Recognising the demand and potential of this asset, Colliers’ teams worked diligently behind the scenes to attract interest and lease offers, effectively de-risking the site for the new owner.
“There has been enormous demand from national retailers for highway frontage sites like this for a while. We received interest and offers from various national tenants and presented the site to a local developer/investor. After negotiations, the parties agreed, and we have secured lease offers ahead of settlement,” Mr Nanni added.
The purchaser engaged Colliers to lease the large format retail space, successfully securing several compelling offers from high-profile national tenants to take 100% occupancy of the site later this year, ensuring the investment returns for the purchaser are low risk and highly compelling.
Mr Nanni noted, “High-profile assets like this are in high demand, especially from national retailers seeking large sites in Geelong. The lack of supply to meet this demand remains strong.”
“The tenants were drawn to the property’s strategic location with its high exposure and accessibility. The demand from national large format retailers to secure sites in Geelong continues to grow as Geelong continues its growth trajectory. The fact that we were able to identify tenants and present offers before settlement underpinned the sale.”
This property’s successful sale and the soon-to-be-announced lease transactions highlight the robust demand for large format retail spaces in Geelong and the strategic value of securing prime locations with high exposure for investors and tenants.
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