A developer that quietly accumulated Geelong CBD land, including one stretching half a city block, is set to launch new commercial and apartment developments worth more than $110m.
Up Property has revealed the extent of its Geelong CBD holdings, showcasing two key development sites where it is drawing plans for mixed use projects in the near future.
General manager Marcus Jankie said much of the property had been purchased off-market, with the developer working with Geelong commercial agents Gartland and Colliers to put together the portfolio.
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The developer went public after acquiring the final piece of the puzzle, two shops at 160 and 162 Malop St, which creates a more than 2200sq m holding that stretches to 172 Malop St, immediately east of Officeworks.
Mr Jankie said the company acquired part of the site several years ago, making a commitment to the long-term owners they weren’t going to develop it immediately.
The long-term play worked in Up Property’s favour.
“The revised Central Geelong planning framework allows for 42 metres, which actually allowed this site to be a larger scale development than when we purchased it,” Mr Jankie said.
Up Property expects to submit plans later this year on a project to be worth more than $50m.
“We are looking at mixed use, anything from commercial retail on the ground floor which goes along with the green spine which will go there and developing some commercial or residential above,” he said.
“Geelong is changing really quickly and the demand for housing – affordable housing in these areas is growing, as is just the need for commercial space, so it’s really about us responding to what the market requires.”
Central Geelong has been one of the busier established areas for dwelling construction, with Suburb Trends data showing 537 homes approved in the past five years.
PropTrack data shows the CBD unit market is maturing, with the median price for units climbing 13 per cent in 12 months to $730,000.
Up Property has also created a 1760sq m development after paying $4m for a two-storey building at 37 Malop St. The site stretches north from Malop St and includes an existing car park and The Bush Inn hotel on Corio St.
On this site, which is near Geelong’s West End hospitality precinct via a new walkway from Malop St, Up Property expects to create a 12-storey mixed use development with an end value of more than $60m.
Mr Jankie said hospitality would likely form part of this project, which neighbours TAC, GMHBA and NDIS headquarters.
“We’ve played around with concepts and again, the next the next step is we will plan to go into development there, but there is a lot going on in that pocket at the moment. I think I think Malop St for us will come off the ranks first.”
“We’re starting to see in a lot of these mixed use developers a hospitality offering or an amenity that you do provide is definitely works good for the commercial tenant offering.”
Up Property also paid $13.75m for the 3500sq m property at 68 Gheringhap St, where the ground floor is presently the head office to law firm Harwood Andrews.
This also presents an unparalleled future mixed-use large-scale development site in the heart of the Geelong CBD, with Up working with Harwood Andrews to refurbish the property immediately after negotiating a new 10-year lease with the law firm.
Up Property’s other Geelong projects includes 126-128 Lt Malop St, Geelong, which is home to Geelong Advertiser and Barwon Health, and the development of Barwon Health’s Mental Health Hub at 181 Moorabool St.
“Geelong continues to provide opportunity and that is mostly due to population growth and the value proposition to add value,” Mr Jankie said.