Primo Pako St position
Site sells for $3.21m
NATIONAL retailers are tipped to fight for the first chance in years to secure a large tenancy in the heart of Pakington St after a blue chip commercial property netted more than $3 million.
An investor paid $3.21 million for the 382sq m freehold property at 196-198 Pakington St, Geelong West, which is home to Murphy’s Newsagency.
It’s the biggest price paid for a single retail tenancy in the heart of the strip between Hope and Weller streets.
Just two retail properties have netted more on Pakington St — $4.07 million last September for the former V&R fresh food market, which occupies more than 2000sq m at 5-7 Pakington St, and the Pakington Village complex, which sold for $7.9 million in 2016, according to CoreLogic.
Darcy Jarman, Geelong West agent Tim Darcy said about 200 people watched the auction, which had attracted significant interest from local and Melbourne buyers.
Yet only two parties participated after a $2.5 million opening bid stunned the crowd.
“We got a very aggressive opening bid of $2.5 million and that particular party, together with another party, fought it out until we knocked it down,” Mr Darcy said.
The agents had suggested the property could sell for between $2.5 million to $2.75 million during the campaign, but given the significant interest a $3 million-plus sale was possible.
“I think that given all due credence to the buyer segment in the marketplace, they saw it there as well.”
The property has been held by the newsagent’s owners since 1979.
Mr Darcy said a hunt for new tenants would start soon, while the newsagency relocates to the opposite side of Pakington St in spring.
“It will create an exciting opportunity for the strip,” he said.
“For a lot of the national and multinationals to get a foothold in the heart of Pako in a retail space of 350sm is very rare. You can’t find it.
“It’s a very similar situation to Gazman across the road. That opportunity hasn’t been created in this strip since Gazman went in about 20 years ago.”
The average-sized Pakington St retail tenancy leased in the past year was 112sq m.
“A lot of retail is at that level, but the bigger and more dominant retailers need more space than that. Your 350sq m footprints in your stronghold areas are very difficult to find.”