Belmont GP clinic site leased to GMHBA, pathologists sells for close to $6m

66-70 Settlement Rd and 27 Torquay Rd, Belmont, sold for $5.825m recently.

Medical and industrial sectors remain the most buoyant in the commercial property market as the Geelong’s growth continues at pace.

A landmark medical investment on one of Geelong’s busiest road intersections has achieved a strong sub-5 per cent yield after selling for $5.825m at auction.

The land-rich medical investment at 66-70 Settlement Rd and 27 Torquay Rd hosts a GP, allied health and pathology clinics underpinned with leases to health insurer GMHBA and pathologist Clinical Labs.

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Darcy Jarman, Newtown agent Tim Darcy said the 2037sq m would deliver the local investor a recurring annual income of almost $290,000, plus GST, with new five-year lease for options for 15 years.

Mr Darcy said 600sq m of the site was developed, offering a tantalising opportunity for the new owners to potentially reposition or redevelop the property at a later date.

“It was a transaction that was underpinned by a very strategic parcel of land. That arguable is one of Geelong’s busiest intersections,” he said.

Five bidders contested the auction, with a local investor beating Melbourne compatriots for the freehold.

Five bidders contested the auction for 110-112 Bailey St, Grovedale, which sold for $1.8m recently.

“Our vendors were the doctors that previously ran the medical centre. They sold the medical centre in 2017 to GMHBA and retained the freehold. It got to the point where it was right time to sell,” he said.

Mr Darcy said the recurring income would support the investment in the short to medium term, the buyer could have an eye on the future to add value to the asset.

“The building only took up 600sq m of the property, so it had very low site coverage. You have very large scope to further develop the site, potentially with the co-operation of the in-situ tenants.”

Mr Darcy said the region’s population growth pains continued to underpin demand in the medical and industrial property sectors.

“Our market is still very buoyant. Obviously there has been some change in market sentiment in the investment sector,” he said.

4-6 Breakwater Rd, Belmont, sold for $1.61m

“The two sectors of the marketplace that continue to perform, and perform very well, are the medical sector and the industrial sector.

“With our growth and the lack of amenity that we’ve currently got, that supports that growth.”

Colliers, Geelong agent Jonothan Lumsden it’s clear there was still active buyers in the market after a string of recent industrial sales across Grovedale, Belmont, Breakwater and North Geelong.

“It’s a clear demonstration to us there is still active buyers in the market,” Mr Lumsden said.

“Three buyers in North Geelong have missed out, four buyers in Grovedale has missed out.

“That buyer catchment is still strongly predominantly Geelong, with Melbourne buyers coming into the market still.

“There continues to be an undersupply and a lack of land opportunity for construction.”

Owner-occupiers secured properties at Breakwater Rd, Belmont for $1.61m, and at Bailey St, Grovedale for $1.8m.

122 Victoria St, North Geelong, sold for $3.7m.

The Belmont sale follows a $2.835m sale in nearby Curtis St in September.

Mr Lumsden said a Commercial 2 zoning was a key attraction to the buyer at 110-112 Bailey St. The future owner-occupier was expected to take over the 1476sq M property offering buildings areas combining 796sq m over two levels once the existing lease expires in May.

Meanwhile, he said an investor had secured the 3759sq m warehouse complex at

122 Victoria St, North Geelong, for $3.7m.

Mr Lumsden said owner-occupiers were the largest demographic among the bidders for the assets, where the leases were either below market levels or, in the case in Grovedale, about to expire.

The Victoria St site has been leased to Geelong Farm Supplies since 1989, but is a potential future development site with an Industrial 1 zoning, 90m frontage to Victoria St and 38m to Weddell Rd.