This article is from the Australian Property Journal archive
PRESTON’S Toyota dealership is on offer for the first time in 50 years, with the Melbourne property anticipating a sale price of circa $40 million.
The dealership, located at 687 High Street in Preston, occupies a 14,815sqm corner site, across multiple titles and is being offered with a lease to ASX-listed Eager Automotive Limited, which brings in a net income return of more than $1 million per annum.
Nathan Mufale, David Minty and JJ Heng from CBRE’s Melbourne team have been appointed to sale the site via an international expressions of interest campaign, on behalf of McMillan Property Group.
“Rarely do landmark offerings with the size and scale of Preston Toyota come to market. We’re anticipating strong buyer interest in the site, driven by the property’s blue chip ASX- listed covenant, bankable landholding and long-term future upside,” said Mufale.
Eagers Automotive Limited, who were founded in 1913, have seen their sales revenue increase from $500 million in 200 to $8.7 billion in 2020, making them on of Australia and New Zealand’s leasing automotive retail groups.
“Income producing assets underpinned by quality covenants with good lease tenure are highly sought after by opportunity-starved domestic, interstate and international investors and land bankers at present,” added Mufale.
The dealership consists of a car sales showroom, spare parts showroom/storeroom, a service centre, body & paint shop, carwash and hardstand.
“There’s a strong track record of development success in the area, which is expected to underpin significant interest in the site from investors, developers and land bankers, all of whom can benefit from the property’s underlying attributes,” said Minty.
The site is a priority development zone, leaving room for potential redevelopment and also includes around 103 metres of High Street frontage and around 99 metres of frontage to Regent Street, with three access points.
“As a result of the highly favourable zoning, we’re anticipating competition between a diverse range of major private and institutional development groups including residential, mixed use and build-to-rent developers,” added Minty.
The property also benefits from amenities, such as the High Street retail strip, the Preston Market and the Northland Shopping Centre. With access through ample public transport, across tram, bus and train services.
The expressions of interest campaign for 687 High Street is scheduled to close in September of 2021.
