 Asset Class: | Show Room |
 Price: | $ 7600000 |
 Net Yield: | 5.97 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Prime Melbourne Road Investment: National Tenants & High-Exposure Opportunity</b><br><br>Strategically located at 324-326 Melbourne Road, North Geelong, this property sits in one of the region’s most prominent and high-exposure retail corridors. Anchored by <b>nationally recognized tenants Supercheap Auto and Tyrepower</b>, this site delivers secure income and unparalleled visibility, making it a standout investment opportunity.<br><br><br><b>Key Features of the Deal</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Prime Location</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Positioned along Melbourne Road, a major arterial connecting Geelong to Melbourne, the property benefits from high traffic volumes and excellent accessibility. This location is central to North Geelong's thriving retail and commercial hub, attracting a diverse customer base from the surrounding areas.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Flagship National Tenants</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">:</span></p></li></ul><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Supercheap Auto</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: One of Australia’s leading automotive parts and accessories retailers.</span><br><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Tyrepower</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: The country’s largest independent tyre retailer with a strong market presence and customer loyalty.</span><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Diverse Income Stream</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Combined with local tenants, the property generates a robust</span><span style="color:rgb(51, 51, 51);font-style:normal;"><b> income of $483,981.30 p.a.</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, offering secure and diversified cash flow.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Attractive Yield</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: 6% net yield, ensuring strong day one returns.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The upcoming lease renewal with anchor tenant Tyrepower, due in October 2026, presents an exceptional opportunity to </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>review rental terms and unlock potential income growth</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">. The current average rent across the property is $131/m², which is considered low. Recent leasing evidence in the surrounding area supports notably higher rates, highlighting a clear pathway to rental uplift and enhancing the property’s overall income and capital value.</span></p></li></ul>(See rental comparison below for further details)<br><br><br><b>Meet the Neighbours</b><br><br>The property’s high-profile location is complemented by its proximity to a vibrant mix of prominent businesses that reinforce the area’s commercial appeal:<br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Retail & Trade</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Bunnings, Sydney Tools, Beaumont Tiles, Kennards Hire, Beacon Lighting, and Repco.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Quick-Service Restaurants</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: McDonald’s, KFC, and Hungry Jack’s, all driving high foot traffic.</span></p></li></ul><br>This scarce combination of a <b>prime location</b>, <b>national anchor tenants</b>, and a bustling commercial neighborhood makes 324-326 Melbourne Road a premier investment opportunity in North Geelong.
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Geelong is a thriving regional hub with a <b>population of approximately 282,809 and a Gross Regional Product (GRP) of $19.568 billion</b><span style="font-weight:normal;">. Once known primarily for manufacturing, Geelong has evolved into a multi-industry powerhouse, driving economic growth across several key sectors.</span><br><br><br><b>Key Industries Driving Geelong’s Economy</b><br><br><ol style="list-style-type:decimal;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Health Care & Social Assistance – The largest employment sector, anchored by Barwon Health and Epworth Hospital.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Construction – A major economic contributor, generating A$7.323 billion (2022/23) in local sales.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Manufacturing – Home to approximately 700 manufacturers, including leaders in transport equipment, metals, and chemicals.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Education & Research – Deakin University is a key driver of innovation, research, and skilled workforce development.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Retail Trade – A significant employment sector supporting local businesses and shopping precincts.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Accommodation & Food Services – Essential to Geelong’s tourism industry, with its vibrant waterfront, regional attractions, and events.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Transport & Logistics – The Port of Geelong is a key gateway for trade, supporting Victoria’s broader economy.</span></p></li></ol><br><br><b>Proximity to Melbourne & Economic Synergies</b><br><br>Located just <b>75 km southwest of Melbourne</b>, Geelong benefits from its close proximity to the state’s capital, fostering strong economic, employment, and infrastructure links between the two cities.<br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Commuter & Business Links – Geelong is well-connected to Melbourne via the Princes Freeway, V/Line train services, and Avalon Airport, allowing for easy commuting and business interactions.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Employment & Workforce Mobility – Many Geelong residents commute to Melbourne for work, while businesses in Geelong attract skilled professionals from the wider metropolitan region.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Trade & Logistics – The Port of Geelong plays a crucial role in supporting Melbourne’s trade operations, handling bulk cargo and regional exports.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Education & Research Collaboration – Institutions like Deakin University in Geelong and Melbourne’s universities collaborate on research, innovation, and workforce training.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Property & Lifestyle Appeal – Geelong offers a more affordable property market compared to Melbourne, attracting homebuyers and investors while maintaining strong connections to the city’s economic opportunities.</span></p></li></ul>
Additional Location Information File<b>1. Tyrepower</b><br><br><b>Established</b>: 1977<br><br><b>Overview</b>: Tyrepower is one of Australia's largest independent tire retailers, operating over 260 stores nationwide. They specialize in tire sales, servicing, and automotive maintenance, catering to both consumer and commercial clients.<br><br><br><b>2. Supercheap Auto</b><br><br><b>Established</b>: <span style="font-weight:normal;">1972</span><br><br><b>Overview</b>: <span style="font-weight:normal;">Supercheap Auto is a leading retailer in automotive parts, tools, and accessories, with over 300 stores across Australia and New Zealand.</span><br><br><b>Financials</b>: <span style="font-weight:normal;">As part of Super Retail Group Limited, Supercheap Auto contributes to the group's reported revenue of approximately $3.5 billion AUD for the fiscal year ending June 2024.</span><br><br><br><b>3. Challis Design</b><br><br><b>Established</b>: <span style="font-weight:normal;">1995</span><br><br><b>Overview</b>:<span style="font-weight:normal;"> Challis Design is a specialist design firm providing innovative retail and commercial interior solutions. They offer expertise in design, fit-out, and branding services across various sectors, including retail and hospitality.</span><br><br><br><b>4. Call Assist</b><br><br><b>Established</b>: <span style="font-weight:normal;">2001</span><br><br><b>Overview</b>:<span style="font-weight:normal;"> Call Assist provides tailored call center and communication services to a diverse range of industries, assisting businesses in managing customer interactions efficiently.</span><br><br>These tenants represent a <b>diverse mix of automotive, retail, design, and service industries</b>, ensuring a well-balanced and resilient income stream for the property.<br><br><br>
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<span style="color:rgb(51, 51, 51);font-style:normal;"><b>Total Income</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: $481,990 p.a.</span><br><br><span style="color:rgb(51, 51, 51);"><b>Non recoverable Outgoings (estimates only):</b></span><br><br><span style="color:rgb(51, 51, 51);"><b>Property Management (3%): $14,460</b></span><br><span style="color:rgb(51, 51, 51);"><b>Land Tax: $13,645</b></span><br><br><span style="color:rgb(51, 51, 51);"><b>Adjusted Net Income:</b></span><br><span style="color:rgb(51, 51, 51);">$481,990</span><br><span style="color:rgb(51, 51, 51);">- $14,460 </span><br><span style="color:rgb(51, 51, 51);">- $13,645</span><br><br><span style="color:rgb(51, 51, 51);">= </span><span style="color:rgb(51, 51, 51);"><b>$453,885 p.a.</b></span><br><br><span style="color:rgb(51, 51, 51);"><b>Net Yield:</b></span><br><span style="color:rgb(51, 51, 51);">$453,885 ÷ $7,600,000 × 100 = </span><span style="color:rgb(51, 51, 51);"><b>5.97%</b></span>
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Comparable properties with tenancies of 500m2 + 324-326 Melbourne Road, North Geelong | 3465m2 | $131/m2 Cool Drive Auto, 130 Torquay Road, Grovedale | 1068m2 | $196/m2 Kennards Hire, 12-14 Maxwell Avenue, Belmont | 697m2 | $253/m2 National Tiles, 3/174-178 Torquay Road, Grovedale | 1720m2 | $188/m2 Total Tools, 186 Torquay Road, Grovedale | 1800m2 | $167/m2 Blackwoods, 2/168-170 Fyans Street, South Geelong | 520m2 | $240/m2 1 Pakington Street, Geelong West | 700m2 | $250/m2 Comparable properties with tenancies below 500m2 2 Wright Place, Geelong | 189m2 | $385/m2 317 Pakington Street, Newtown | 163m2 | $509/m2 2 & 2A Beauford Avenue, Bell Post Hill | 143m2 | $201/m2 208 High Street, Belmont | 385m2 | $288/m2 13 & 13A Peter Street, Grovedale | 114m2 | $268/m2 79 Barrabool Road, Highton | 204m2 | $402/m2
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<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Land Area</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: 4,653 sqm (approx.)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Gross Lettable Area (GLA)</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: 3,465 sqm</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Street Frontage</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: 59m of prime exposure along Melbourne Road</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Zoning</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Commercial 2 Zone (C2Z), providing flexibility for future redevelopment</span></p></li></ul><br><b>Financial Metrics</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Purchase Price</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: $7,600,000</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Total Rent /</span><span style="color:rgb(51, 51, 51);font-style:normal;"><b> Rent Net</b></span><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">: $481,990 / </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>$453,345</b></span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;">Yield / </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Yield Net</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: 6.34% / </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>5.97%</b></span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Purchase Rate (on GLA)</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: $2,193/sqm</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Purchase Rate (on Land)</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: $1,633/sqm</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Rent / sqm (on GLA)</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: $131/sqm</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>50% Stamp Duty Concession Available</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Investors acquiring assets in this region benefit from a potential </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>50% reduction in stamp duty</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, offering an </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>upfront saving of $233,750</b></span></p></li></ul><br><b>Investment Highlights</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Strong Holding Income</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: A diversified tenant mix generating </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>$453,345 net p.a.</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> ensures stable returns.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Prime Retail & Automotive Location</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Tenants such as Tyrepower and Supercheap Auto benefit from Melbourne Road’s high exposure.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Secure Tenure & Tenant Demand</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: Tyrepower, the tenant with the </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>shortest lease and no renewal option</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, has </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>expressed interest in extending their lease</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, providing additional long-term security for investors.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>High Land Value</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: The land value underpins strong future capital growth.</span></p></li></ul><br><b>Historical Sale Context</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Last Sold</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: 13 May 2015 for </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>$4,100,000</b></span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Current Sale Price</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">: $7,600,000, reflecting strong capital appreciation and continued demand for well-located commercial assets.</span></p></li></ul>
