The former Geelong saleyards adds to existing landholdings including the former Target head office complex in North Geelong for Leaf Corporation.
Geelong’s council has smashed the target it had set to bank from surplus property sales this year as investors dig deep to secure prime land across Victoria’s second city.
The latest is the former livestock saleyards site in North Geelong, which was snapped up for $11m after a competitive expressions of interest process.
It’s emerged that Leaf Corporation, which already has a substantial neighbouring landholding in North Geelong with the former Target head office, has acquired the 4.3ha site that’s been earmarked for a future medium or high density residential development.
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CBRE agents Nathan Mufale, David Minty and Jing Jun Heng handled the expressions of interest campaign to find a new owner for the property at 125-135 Weddell Rd, North Geelong.
The agents received six formal offers for the property, which CBRE senior director Nathan Mufale stated “reinforced buyer confidence in Victoria’s market fundamentals despite global uncertainty, with an undersupply and strong demand for new housing continuing to underpin pricing for well-located assets across key infill locations”.
Mr Minty previously told the Advertiserthe site “gives great flexibility to deliver something exciting and obviously with such an undersupply of housing given what the state government’s housing statistics are trying to achieve, these are the types of strategic development sites that can accommodate serious yield”.
The former Geelong saleyards is on the market as a mixed use, residential development site. 125-135 Weddell Rd, North Geelong.
City of Greater Geelong had listed the 4.29ha urban infill site after rezoning the land and endorsing a precinct plan for a mixed use development catering for around 1300 new residents in new townhouses and apartments.
The council design shows the saleyards site could cater for a high-density residential village with up to 600 new homes.
Leaf Corporation’s additional landholding could increase that figure.
Leaf Corporation recently trumpeted a 10-year lease it had signed with Barwon Health for its staff hub at the Getjawil Precinct.
Barwon Health is the major tenant at the Getjawil Precinct in the former Target head office in North Geelong.
Leaf Corporation paid Wesfarmers $11.6m for the former Target head office in 2019 and later $3.75m to the Ramia family for a separate vacant site behind The Sphinx hotel.
Geelong mayor Stretch Kontelj said the sale was a good result for the community.
“It enables council to reduce its debt on the back of that sale and altogether now we’ve pencilled in for sale and settlement this financial year, some $21m of assets, which is a great result for the community,” Mr Kontelj said.
“We set for ourselves a target of just over $16m and we’ve done better than that.”
Among the assets to sell this year are a former Meals on Wheels base in Corio for $450,000 and the landmark Corio KFC restaurant, which sold to a private investor for $4.875m.
Mr Kontelj said the council had also agreed to sell sites in Bell Park and Drysdale, but couldn’t reveal more detail.
Geelong mayor Stretch Kontelj speaking at the Future Geelong event. Picture: Alison Wynd
Mr Kontelj said the saleyards have been put to the market in an open expressions of interest process, but it would allow the buyers to consolidate their land holding.
“They’ll be able to unlock value that maybe it wasn’t there for others because of the land that they own in that proximate area, able to consolidate quite a significant parcel,” he said.
Mr Kontelj said it’s an ideal location for a medium or higher density development, given it wasn’t in a traditional residential area.
A high density development would make a significant inroad to the 128,600 dwelling target by 2051 the state government had set for Geelong’s council.
“It just shows that you have a council that is open for business and will do whatever it takes to make that happen,” Mr Kontelj said.
“We are definitely up to the challenge of trying to achieve that housing charges of 128,600 homes that the state government has sent us in a sensible way without, without destroying what is special about Geelong.”