Landmark Corio motel freehold sold in multi-million deal
The freehold title to the Corio Bay Motor Inn is on the market at 292-296 Princes Highway, Corio. The property generates a $149,092 per year rental income. The business, which owns the leasehold, is not part of the sale.
Buyers of a landmark Corio motel freehold have secured a property offering a significant long-term upside.
The buyer has paid $3.1m to secure the freehold title to the Corio Bay Motel, at 292-296 Princes Highway, Corio.
The business, which owns the leasehold, is not part of the sale.
Gartland, Geelong agent Adam Farrell said the buyer intends to hold the property, which earns almost $160,000 a year in rental income, plus GST and outgoings.
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But Mr Farrell said the property presents a significant future upside, given its 2323sq m landholding with dual main road frontage and Industrial 1 zoning.
The freehold to the Corio Bay Motel has sold for $3.1m.
Corio Bay Motel is the first motel from Melbourne into Geelong and is also the closest accommodation to Avalon Airport.
The operator of the motel holds a five-year lease from 2018, with further options.
The property has 25 motel rooms and a two-bedroom on site manager’s residence, plus a dining room and kitchen facilities and offers the potential to add further rooms on the large site.
“At the moment they will just retain it. They haven’t given any indication of their long-term plans.
“It’s a good business. The main objective there would be to hold.
The freehold to the Corio Bay Motel has sold for $3.1m.
“But you’ve also got the land component there, which is a bonus, whether it be bulky goods or showrooms with that position. There is future upside there definitely.”
Earlier, a local investor snapped up two securely leased properties on High St, Belmont, for more than $1.7m.
The retail sites at 134C High St has been a long-term lease for Geelong Travel, while Paddington Cafe has earned a large following at 134B High St.
A local investor has snapped up 134C and 134B High St, Belmont, at auction.
Geelong Travel secured a new two-year lease this month for 134C, which sold for $702,000. The property achieved a 3.3 per cent yield.
A 3.48 per cent yield was achieved at the neighbouring property, which sold for $1.005m.
Mr Farrell said six bidders contested the properties at the auction, after 30 groups had made inquiries during the campaign.
The properties achieve a combined rent of almost $60,000 a year, plus GST and outgoings, with both tenants holding several further lease options.
