This article is from the Australian Property Journal archive
REAL estate funds manager EG has extended its acquisition streak with the $23 million purchase of a Toyota car dealership and service centre in Sydney’s north west.
The sale and leaseback deal of the West Ryde property was struck with global company Servco, one of the largest Toyota dealership groups in Australia, and which will enter into a 15-year lease.
As part of the transaction, EG will undertake an extensive refurbishment of 1044-1050 Victoria Rd to bring the property to Toyota’s modern standards. Improvements comprise a showroom, service and repair centre over 6,554 sqm of land.
The net passing yield following completion of the works will be approximately 5.5%.
The asset will be held in the Yield Plus Infrastructure No.2. Fund, launched in August of 2016 with a $750 million real estate mandate.
EG last week spent $72 million picking up Sydney assets in the industrial and healthcare sectors, which have outperformed throughout the COVID period. One of those, a fully leased office building opposite the Royal North Shore Hospital in St Leonards, with a large portion leased to medical users, will also be placed in the fund.
The fund was launched in August of 2016 with a $750 million real estate mandate, and seeks yield producing assets with repositioning potential for new or upgraded infrastructure.
“The opportunity to acquire a property with a long term lease to a strong covenant such as Servco, and proximity to the West Ryde Railway Station, town centre and major community infrastructure such as Macquarie University and Western Sydney University, is rare,” EG associate director, Sean Fleming said of the most recent pick-up.
He added the property offers potential for capital growth due to its strategic location, and Ryde City Council’s recent revitalisation proposal for the area should also enhance the property’s long-term value.
CBRE brokered the transaction.
