This article is from the Australian Property Journal archive
A CAR park in a prime Geelong location has sold under the hammer for $22.6 million, eclipsing price expectations.
The 4,000sqm Civic Centre Car Park at 21 Gheringhap Street in Victoria’s second largest city was sold at auction, with bidding opening at $16 million and three bidders taking part.
Ben Young Andrew Lewis and Chris Nanni from Colliers exclusively managed the sale of the property on behalf of The City of Greater Geelong.
As a condition of the sale, 500 commercial car parks on the site must be retained for at least a decade. With the city also retaining a space for its projector for the same period, to enable the continuation of its City Hall projections project.
According to Young, the asset was expected to pull in around $20 million at the auction, which attracted strong interest from both local and offshore investors throughout the sales campaign.
“We had strong demand from local and national purchasers, who recognised the future value of the site with its prime location in Geelong,” added Young.
“With the council’s target of achieving 10,000 residents within the CBD, there is significant opportunity for mixed use and residential high-rise developments.”
The car park sale marks the first of four assets the council has earmarked to offload, with proceeds from the sales to be reinvested into funding facilities and services for the city, according to the 2022-23 budget.
“Rising construction costs are placing pressure on the Council’s budgets, and the funds from this sale will go back into community assets, helping us deliver the facilities needed to support our growing population,” said Trent Sullivan, mayor.
“A sale of this significance is also pleasing because it shows confidence in the business sector about central Geelong’s future and long-term economic potential.”
Settlement is expected to occur in June 2023 and all existing tenancies within the property will be honoured.
