Chadstone car dealership revs up to $32.6m sale, including Hungry Jacks
A whopper $32.6m sale of an Oakleigh car dealership was sealed with a burger as investors and developers rev up their appetite for automotive properties and fast food venues.
The high-priced combo deal included the Chadstone Ford and Hyundai dealership, with a Hungry Jacks restaurant on the side.
The property attracted 13 bids, the majority showing it was to the taste of local buyers, but three Chinese nationals were among the final four driving the hefty result — with one of them claiming the title.
The 6953sq m site at 1424 Dandenong Rd, Oakleigh, was sold by Preston Motors, who also sold the leasehold on the property last year.
Preston Motors chief executive Robert Gattereder said the firm had intended to retain the title to the property, but had been presented with a “very attractive divestment plan which we couldn’t ultimately reject”.
Burgess Rawson partner Billy Holderhead brokered the sale and said he believed the deal had proven a whopper in more ways than one.
“The buyer was back down there on the Saturday and I think my colleague, Zomart, did take him for a burger at the Hungry Jacks,” Mr Holderhead said.
It also achieved a record low yield of 3.32 per cent for both the fast food and car dealership sectors.
Burgess Rawson head of Asian investment services Zomart He said three of the top four bidders had been Chinese citizens.
“These groups were all attracted to the set-and-forget investment qualities, but all had an eye on the long-term future of the site,” Mr He said.
Mr Holderhead said the international buyers had homes, businesses or children at school in Australia — but also had significant businesses in China, where they were still citizens.
“There are a lot of Chinese groups that are really actively chasing developments and investments at the moment,” he said.
Gross Waddell ICR director Danny Clark also worked on the sale and said a surge in demand for new cars had translated to heightened demand for the dealerships selling them.
Meanwhile, two more car dealerships have been listed for sale this week.
Mr Holderhead is now selling Etheridge Ford in Ringwood in conjunction with CBRE’s Nathan Mufale and Scott Hawthorne.
The 495 Maroondah Highway property is expected to snare $19m.
Mr Holderhead said the property was expected to attract a mix of investors, developers and car dealership operators.
But no matter who buys it, he is expecting a major overhaul in the next decade, potentially following an Elenberg Fraser architectural plan already drawn up to make the 14,084sq m property a health and hospital precinct.
“In eight or nine years time, there’s a very small chance it will look the way it does today,” Mr Holderhead said.
“The hospital plan is almost in campus style from front to back and up to six levels. It’s something the owners played around with.
“But there are certainly other industry stakeholders who are looking at it quite closely.”
Currently owned by a developer and Brett Coopersmith, who used to run Ringwood Mazda nearby, the property’s sale is expected to fund a BMW dealership development the partners are working on nearby.
The Etheridge Ford site is zoned commercial two and comes with a showroom, offices, a workshop and a tenant paying $755,478 a year in rent.
It last changed hands for $9,439,500 in 2013.
Expressions of interest for Etheridge Ford close at 3pm, November 26.
Mr Mufale and Mr Hawthorne are also working to sell the Bayside Chrysler Jeep Dodge property expected to top $20m in Frankston.
The 126 Dandenong Rd property spans 11,200sq m and is being touted as one of the biggest commercial two-zoned properties to hit the market in the suburb.
“We can’t say definitively it’s the biggest, but we can’t find anything remotely similar,” Mr Hawthorne said.
They are expecting international and interstate developers to eye the site given “how rare it is”.
It has been amalgamated over decades, with neighbouring properties bought and incorporated as the business continued to grow.
It is currently run by Eagers Automotive Limited, which began as E.G. Eager & Son in 1913.
Expressions of interest are due by November 24.
Other major automotive dealership sales this year include a $50m deal signed by prestige car dealer Nick Theodossi for a 99 Lorimer St, Port Melbourne, Subaru dealership that is expected to be developed in the coming years.
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