A premium investment opportunity in the heart of Geelong’s CBD, Shop 6 at 38 Ryrie Street spans approximately 323 m² within the landmark Geelong Quarter development. This newly completed mixed-use precinct includes a 180-room Holiday Inn hotel and 124 apartments, ensuring a strong footfall for surrounding retailers. The asset offers an exceptional return, strong expected depreciation, along with a long lease period providing security.<br><br>The premises accommodate a high-quality fitness and wellness facility featuring an open-plan gym with 24/7 access, dedicated recovery spaces including saunas, ice baths, and cryotherapy suites, and modern changeroom facilities. The private nature of the tenancy aligns seamlessly with the operator’s premium service offering.<br><br>The asset delivers a net income of $127,642 p.a. (after non-recoverable land tax of $110pa, plus management fees estimated at 4% p.a.), equating to an impressive net return of 7.5%. With the asset only recently built, it is likely to offer strong depreciation benefits, further enhancing the after tax returns.<br><br>Leased to Sweatshop World, a well-established and growing brand in the health and wellness industry, operating three locations across Melbourne and Geelong. The tenant boasts a strong membership base exceeding 1,100 members, underpinned by a proven track record in the fitness sector. The lease comes with a secure 10-year lease commencing March 2024, expiring March 2034. The tenant has a further 1 x 5-year option providing long-term income security. Annual rent increases are fixed at 3.00%. <br><br>Positioned within Geelong’s CBD, this property benefits from proximity to major employment hubs, including Deakin University, Barwon Health, and key government departments. The surrounding area features a thriving hospitality and entertainment precinct, anchored by the nearby Little Malop Street dining strip and the $140M Geelong Arts Centre redevelopment. Additionally, Geelong Train Station (400m away) provides excellent connectivity, further enhancing the appeal of this prime investment.<br><br>This purchase is expected to benefit from the 50% regional commercial stamp duty concession for commercial properties purchased in regional Victoria. Based on a purchase price of $1,700,000, this concession translates to a $46,750 upfront saving. <br><br>It is understood that the adjacent tenancy is about to be leased out for $600/m2 – which demonstrates rental growth potential for this asset.