Geelong commercial property portfolio for sale with $7m-$7.5m price tag
Four adjoining office and retail buildings near Geelong’s St John of God Hospital are up for sale, offering more than $358,000 in annual rent and potential for redevelopment or future medical tenancies.
Price expectations are $7 million to $7.5 million for the portfolio at 55-67 Myers Street and additional land behind the buildings at 19 O’Farrell Place South, a short walk from Geelong’s picturesque waterfront and about 70 kilometres south-west of Melbourne.
Maxwell Collins agents Paul Whyte and Nick Lord are marketing the properties individually or as an entire holding on behalf of private vendors.
Tenants include the real estate agency Maxwell Collins, print shop Creffield Digital Print, plant and coffee business Oh Honey, and financial services company Shakespeare Rae.
Together, the properties comprise a 1587 square metres of building area on a 1862-square-metre site in the city’s commercial and medical precinct. The Myers Street buildings sit directly opposite Rydges Geelong, with St John of God Hospital next door to the hotel.
The 284-bed private hospital provides emergency, surgical and maternity services.
Whyte says the offering provides flexibility for investors seeking established tenancies, with the proximity to the hospital adding to its appeal.
“There could be medically aligned tenancies down the track,” he says. “Or someone could redevelop somehow, or look to occupy one or two or multiple of the properties themselves.”
The information memorandum identifies potential for multilevel commercial, residential or mixed-use development, subject to council approval.
The fully leased portfolio generates $358,098 annually, plus GST and outgoings, equating to an indicative passing yield of approximately 4.8 to 5.1 per cent across the quoted price range.
“The yield on the purchase price is circa 5 per cent, which I think is good because there might be upside to it,” Whyte says.
Maxwell Collins is the anchor tenant, contributing almost 59 per cent of the income.
It has leased its premises since March 2003, with its tenancy covering 55 Myers Street and the additional car park at 19 O’Farrell Place South.
The agency pays $210,000 annually under a lease running until March 2029, with a further three-year option.
Creffield Digital Print has leased 63 Myers Street since 2013 and pays $48,370 a year under a periodic lease.
Oh Honey took over the lease at 65 Myers Street in November 2019 and pays $42,313 annually, with a term extending to next March, with a five-year option.
Shakespeare Rae moved into 67 Myers Street in June 2019 and pays $57,415 a year, with its term expiring next March and no further options.
Existing leases and renewal options would need to be considered in any plans for redevelopment or owner-occupation.
The holding has about 85 metres of street frontage and front and rear access. Whyte estimates there are more than 24 car spaces across the garages and separate parking yard.
The City of Greater Geelong forecasts the municipality’s population will reach 441,984 by 2046, up from an estimated 295,052 in June last year.
The portfolio is for sale via expressions of interest closing at 4pm on Thursday, December 3, unless sold prior.
