Civic Car Park sale good news for council, community

THE City of Greater Geelong’s $50 million property sales plan is off to a strong start, with its Civic Centre Car Park surpassing its lofty price expectations and selling for $22.6 million.

Colliers Geelong conducted the private auction last month at the city offices, Wurriki Nyal with a local property owner entering the winning offer.

As a condition of the sale, the property must retain its 500 public car parks for at least 10 years.

That provision, along with a delay on approval of the Central Geelong Framework Plan that is currently with the state government, means short-term development of the site is unlikely.

Preston Rowe Paterson Geelong director Gareth Kent said the high price was a strong result for the council in what he said was arguably “the most significant future development parcel in Geelong”.

“When you peel it back to its return of only $1.3 million or thereabouts, and throw into the capital expenditure that’s got to be spent on it, it’s a pretty low-yielding property.

“It’s a unique asset, there’s only about half a dozen transactions on car parks across the country, and they’re all over the shop in terms of yield.”

Mr Kent said he was “pleased” to see the property remain in local hands, which he said would likely produce the best result for the Geelong community.

“It’s a significant site, especially for what it provides the local area in terms of car parking.”

Selling agent Ben Young said the result reflected healthy interest during the selling campaign.

“We had good strong demand from the whole campaign, from local and national purchasers,” he said.

Settlement is expected in June 2023 and existing leases will be honoured.

The City of Greater Geelong had expected around $20 million for the 4,000-square-metre property when it announced its intention to sell the asset in the lead-up to its 2022-23 Budget.

The car park is the first of four commercial properties the city will offload to boost its spend on infrastructure renewal across the region, with the sales expected to raise a total of about $50 million.

The city’s Busport Car Park and offices at Brougham Street is the next property due to be sold early this year, followed by a ten pin bowling and maternal health site at Reynolds Road, Belmont and a KFC store on the Princess Highway, Corio in the next financial year.