This article is from the Australian Property Journal archive
THE South Yarra BMW dealership has been put to the market with and could bring in as much as around $37 million, offering a prized substantial inner Melbourne site zoned Commercial 1 for any developers willing to play the long game.
The prominent 3,887 sqm corner site at 145 Williams Road, Prahran is being offered with a 15-year lease to Autopact, one of Australia’s biggest auto dealers, with two further 10-year options.
Current return is $1,857,665, with land tax recoverable from the lessee, and 3.25% annual increases.
A significant extension and renovation of the building was completed in 2016.
Sutherland Farrelly’s Grant Sutherland, Paul Farrelly and Paul Sutherland are marketing the property, and expecting interest at a circa 5% return.
Grant Sutherland said the current tenure provides the astute investor long-term security, with the benefit of the high underlying land value, associated with such a prime location, for future redevelopment.
It is next to a BP service station and McDonald’s, and metres from the busy corner of Malvern Road.
The public tender campaign closes Thursday, June 14.
Over the summer, Malaysian-backed developer Beulah acquired the BMW Southbank dealership site for $101,008,888 from the German car manufacturer.
The triple-fronted 58 Southbank Boulevard site encompasses 6,061 sqm, of which around 2,000 sqm will be utilised for a new BMW dealership, which was offered with a development scheme by Fender Katsalidis that comprises two towers with more than 800 apartments, 600 hotel rooms and 10,000 sqm of retail space.
The deal followed an investment syndicate’s $35 million purchase of the 11.4-hectare Nissan Australia Melbourne headquarters in Dandenong South.
The property is split into an 8.7-hectare warehouse site at 8-22 Quality Drive and an office site of 2.7 hectares at 260-270 Frankston Dandenong Road.
Australian Property Journal
