The Frankston site of a Ford car dealership leased to Australia’s largest automotive retailer has been listed for sale in a move tipped to attract both private and institutional investor interest.
The CBRE Retail Investments team of Sandro Peluso, Joseph Du Rieu and Kevin Tong have been appointed to market the Jeff Wignall Ford Frankston site, which is leased to the ASX listed AHG Group, Australia’s largest automotive group.
The campaign is being steered on behalf of local private investor Andrew Cross, with the 20-22 Overton Road property expected to attract significant interest given the blue-chip tenancy covenant.
The property offers a substantial land holding of 8,800sqm and is situated in the heart of Frankston’s automobile precinct.
CBRE’s Sandro Peluso commented; “Ford Frankston forms a key part of the Ford sales and service offering in the bayside suburbs. The service centre has been in its current location in Frankston since 2006 and has built a strong following in the area.”
The property is being offered with a five-year net lease, providing an initial annual income of $760,000 with fixed 4% increases per annum.
“Strong investor interest is expected to be underpinned by the strong covenant to a listed tenant and the sizeable land holding, which will also allow for future flexibility,” Mr Peluso added.
CBRE’s Kevin Tong noted that a lack of available blue chip investment grade properties combined with historically low interest rates was helping to support continual yield compression, particularly in the retail sector and drive interest in opportunities such as 20-22 Overton Road.
The listing coincides with a $100 million+ investment in Ford retail dealerships across Australia to meet new customer customer interface standards.
The Overton Road location has won a series of prestigious dealership awards and is a Ford flagship.
The CBRE Retail Investments team of Sandro Peluso, Joseph Du Rieu and Kevin Tong have been appointed to market the Jeff Wignall Ford Frankston site, which is leased to the ASX listed AHG Group, Australia’s largest automotive group.
The campaign is being steered on behalf of local private investor Andrew Cross, with the 20-22 Overton Road property expected to attract significant interest given the blue-chip tenancy covenant.
The property offers a substantial land holding of 8,800sqm and is situated in the heart of Frankston’s automobile precinct.
CBRE’s Sandro Peluso commented; “Ford Frankston forms a key part of the Ford sales and service offering in the bayside suburbs. The service centre has been in its current location in Frankston since 2006 and has built a strong following in the area.”
The property is being offered with a five-year net lease, providing an initial annual income of $760,000 with fixed 4% increases per annum.
“Strong investor interest is expected to be underpinned by the strong covenant to a listed tenant and the sizeable land holding, which will also allow for future flexibility,” Mr Peluso added.
CBRE’s Kevin Tong noted that a lack of available blue chip investment grade properties combined with historically low interest rates was helping to support continual yield compression, particularly in the retail sector and drive interest in opportunities such as 20-22 Overton Road.
The listing coincides with a $100 million+ investment in Ford retail dealerships across Australia to meet new customer customer interface standards.
The Overton Road location has won a series of prestigious dealership awards and is a Ford flagship.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
