BMW car dealership offered for sale in Melbournes Inner North
BMW car dealership offered for sale in Melbourne's Inner North
| 12 June 2017
The BMW Bundoora car dealership in Melbourne’s Inner North has been listed for sale.
Located at 62 Enterprise Drive, the15,210sqm site, the property is leased to ASX-listed Autosports Group on a five-year term, generating an income of $1.44 million.
CBRE Victorian Retail Investments’ Justin Dowers, Mark Wizel and Kevin Tong have been appointed by a private local investor to market the property via a public expressions of interest process closing on Thursday 6th July 2017.
Mr Dowers commented: “The campaign is expected to attract strong interest from a range of investors, both private and institutional, given the rarity of owning an asset leased to an ASX-listed national tenant.
“BMW Bundoora forms a key part of the BMW sales and service offering in the inner suburbs. The service centre is partnered with BMW Doncaster, from which many of the vehicles are transferred to Bundoora for servicing.”
The property, which benefits from extensive road frontage onto the Metropolitan Ring Road, also offers future development opportunities.
The BMW Bundoora car dealership recently underwent a significant refurbishment, including a new state of the art ‘BMW Body Shop’, which is considered to be one of the largest and most technologically advanced BMW motor body repair centres in the southern hemisphere.
“The appeal of this asset is further enhanced by its prominent position in Melbourne’s booming northern growth corridor, which is forecast to experience population growth of 18.3% between 2017 and 2022,” Mr Dowers added.
The offering of BMW Bundoora comes weeks after the successful sale of both Fitness First Bayside ($17,800,000 // 6.61% yield) and Woolworths Highton ($12,430,000 // 4.67% yield).
Mark Wizel said the lack of available blue chip investment grade properties combined with historic low interest rates was helping support continual yield compression, especially in the retail sector.
“If we look at what is happening around the world, the instability of so many political landscapes, heightened security risk in powerhouse countries and overall low growth globally, it is clear to see why prime properties in Australia continue to be snapped up on yields between 4.25% and 6%,” Mr Wizel said.
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