This article is from the Australian Property Journal archive
FAST and the furious investors are expected to race for the first Porsche dealerships freehold investments ever offered in Australia, as the PM Group looks set to drive away with over $45 million.
The PM Group, formerly Preston Motor Group, is divesting the Porsche Centre Brighton and Porsche Centre Doncaster, its last two freehold investments after selling the dealership business to American giant and Fortune 500 company, Penske Automotive Group for a reported $80 million.
The Porsche Centre Brighton and Porsche Centre Doncaster properties will be sold with a lease to Penske Australia, a brand-new 12-year term with fixed rental increases.
JLL’s Stuart Taylor, Tom Noonan, Jarrod Herscu, and MingXuan Li have been appointed to manage the expressions of interest campaign, with Advise Transact advising the vendor as transaction manager.
The properties are offered individually or ‘in one line’ the EOI closes on 25th July 2024 at 3:00 pm (AEST).
Industry sources are speculating the properties will fetch over $45 million.
Advise Transact managing director Mark Wizel told Australian Property Journal that this is the best freestanding investment opportunity to hit the market in over a year.
“These properties have been highly sought after for as long as I have had the enjoyment of representing the freehold owners. A recent sale of the business operations from our client to Penske Automotive Group has further strengthened the quality of the subject properties and their likely desirability to astute investors based both in Australia and abroad,” he added.
Wizel told Australian Property Journal that this was a rare opportunity, because it is the first-time ever Porsche dealership freeholds have been offered in Australia and with the recent rebound in transactions, there is untapped capital looking for a home.
“These investments tick all the boxes, large freehold land, sold with brand new 12-year long term leases, and to a prestigious brand, Porsche,” he added.
JLL senior director of retail investments Stuart Taylor concurred, that it will be a first in Australia, for an investor to become the landlord of a Porsche dealership.
“We expect significant national interest in the assets, not only because of the trophy nature of the properties, but due to the superb combination of high calibre lease covenant, prime underlying freehold landholdings and attractive Net lease structure.” Taylor added.
James Bergműller, Chairman of PM Group who have held the properties starting with Brighton in 2009, said both Brighton & Doncaster are truly exceptional properties.
“However we are not in the property investment business, we are in the automotive business, and since our interest in the dealerships have been divested, the property has become non-core,” said Bergműller.
JLL retail director Tom Noonan said these assets represent super-prime investments.
“On-market opportunities such as this rarely present themselves. The last high-calibre luxury dealership opportunity of this nature was in 2018 with the sale of BMW South Yarra for $45 million.
Porsche Centre Brighton is located on the prestigious bayside suburbs’ ‘Golden Mile of Cars’ at 855-859 Nepean Highway on a major 4,049 sqm landholding.
Porsche Centre Doncaster occupies a high-profile site at 839 Doncaster Road, and is underpinned by a valuable Commercial 1 landholding of 1,674sqm in one of Melbourne’s most sought after eastern suburbs.
