This article is from the Australian Property Journal archive
REAL estate fund manager EG has picked up another Toyota dealership and showroom on Australia’s east coast that it will refurbish and upgrade as part of a sale and leaseback deal with Servco.
In the newest deal it has paid $13.6 million for a Wynnum Rd site in Brisbane’s inner eastern suburb of Morningside, which will be held in EG’s Long WALE Property Trust No. 1. Wholesale investors can expect annual cash distributions of 7.25%, increasing to 8.5% across the seven year term of the trust.
The high exposure property has a land area of 8,324 sqm and comprises Toyota showroom, repair and maintenance centre, and second-hand dealership. It was acquired with a 15-year leaseback to global car dealership group Servco, one of the largest Toyota dealership groups in Australia.
“EG will continue to source investment for our private wealth division, providing investors with stable income cashflows, and the potential for capital growth through various value add strategies, which for this acquisition includes a major refurbishment of the existing dealership,” associate director, capital transactions Sean Fleming said.
EG recently spent $23 million acquiring a Toyota dealership in Sydney’s West Ryde, also from Servco and with a 15-year leaseback.
In that deal, EG will undertake refurbishments to bring the showroom, service and repair centre to Toyota’s modern standards. 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.
Both transactions were brokered by CBRE.
