Colliers sells old Ray’s Outdoors site

THE action continues as Colliers wrap up another successful transaction with a significant property at 340-344 Melbourne Road, North Geelong, successfully sold off-market for $8,500,000.

Colliers agent Chris Nanni was point on this vacant property that features a 4,750sqm showroom on a 5,560sqm land area.

Known as the “old Ray’s Outdoors” site, this high-profile asset offered a rare chance to acquire a substantial site on Melbourne Road, a busy corner location with unique left-in and right-in access, perfect for large format retail.

“The sale price reflects a rate on lettable area of below $1,800 per square metre, well below the replacement cost, and this sets the new owners up to drive very compelling returns over the short to medium term.”

“Recognising the demand and potential of this asset, Colliers’ teams worked diligently behind the scenes to attract interest and lease offers, effectively de-risking the site for the new owner,” Mr Nanni said.

“There has been enormous demand from national retailers for highway frontage sites like this for a while, and we received interest and offers from various national tenants and presented the site to a local developer/investor.”

The purchaser has engaged Colliers to lease the large format retail space, successfully securing several compelling offers from high-profile national tenants to take 100% occupancy of the site later this year, ensuring the investment returns for the purchaser are low risk and highly compelling.

Mr Nanni noted high-profile assets such as this were in high demand, especially from national retailers seeking large sites in Geelong.

“The lack of supply to meet this demand remains strong with the tenants being drawn to the property’s strategic location with its high exposure and accessibility,” he said.

The demand from national large format retailers to secure sites in Geelong continues to grow as Geelong maintains its growth trajectory.

Colliers’ ability to identify tenants and present offers before settlement underpinned the sale.

This property’s successful sale and the soon-to-be-announced lease transactions highlight the robust demand for large format retail spaces in Geelong and the strategic value of securing prime locations with high exposure for investors and tenants.