This article is from the Australian Property Journal archive
THE Mitsubishi Liverpool car dealership has been sold for $22.5 million.
The property at 375-377 Hume Highway, in Sydney’s western suburbs, is the final asset in Charter Hall’s Direct Automotive Trust No.2 fund, reflecting a yield of 4.66% and a premium to the funds acquisition of the asset in 2018.
A private investor from Melbourne purchased the automotive asset after a campaign that yielded 10 first round offers.
The property was sold by Stonebridge Property Group after a public expressions of interest campaign.
“Private investors and syndicates are desperate for high quality, modern income producing assets particularly those with outstanding land fundamentals, but stock levels are at all-time lows. 17 buyers requested contracts and 10 of those lodged competitive offers – very strong numbers that resulted in attractive pricing and an unconditional exchange,” said Philip Gartland, partner at Stonebridge.
“The investor landscape is changing quickly as investors are broadening their mandates in order to secure stock.”
The asset, which is approximately 27km from the Sydney CBD and 18km from Parramatta CBD, is comprised of a 2018 purpose-built dealership, leased to Eagers Automotive with 12 years left on their lease.
“The cost of debt has never been lower providing investors with healthy arbitrage yields on income producing investments. The profile of buyer group was surprisingly diverse, from private investors, commercial office investors through to syndicators and Asian investors,” said Justin Dowers, Melbourne based partner at Stonebridge.
“Enquiry from Melbourne based private investors has also exploded over the past few weeks as they emerge from the frustration of lockdown, with this putting additional pressure on pricing for quality assets,” concluded Dowers.
