A Melbourne syndicate of private investors has divested its Jeep car dealership site in Caroline Springs, selling to a private investor from Ballarat for $6.05 million.
Boasting an annual net income of $501,000 per annum, the 2,091sqm strata site is currently leased to a local Jeep franchisee with five years remaining on the lease term.
Located in the heart of Melbourne’s growing west and at the centre of the Caroline Springs retail precinct, the site is surrounded by a swathe of national tenants – including Bunnings Warehouse and Officeworks, and directly opposite the newly built Shell service station.
The property’s City of Melton location has been identified as one of the fastest growing corridors in Australia, with the population having increased by 72% to 150,000 residents over the past 10 years.
CBRE’s Victorian Retail Investments team of Joseph Du Rieu, Kevin Tong, Dylan Kilner and Rorey James steered the Expressions of Interest campaign, which attracted interest from domestic and international investors, with multiple bids from across the country.
“At the campaign’s close, we had received seven formal expressions of interest, indicating strong demand for single tenanted retail investments,” Mr Du Rieu said.
“Private investors are recognising the value of commercial property offering fixed term leases of five to 20-years and, in many cases, are viewing this style of asset as a more secure alternative to residential property investments.”
Mr Kilner noted that while the Caroline Springs property was leased to a local franchisee, as opposed to a national tenant, the buyer’s confidence had been underpinned by the catchment’s strong population growth and continued demand for retail space.
He added; “The sale reflects a high building rate of $2,893 per square metre - a record for the area and 35% higher than the last sale in the same strata complex.”
The sale of Jeep Caroline Springs follows a string of recent freestanding retail investment sales in late December and early January, including Ford Frankston at $13.25 million, 7-Eleven North Melbourne at over $4 million and United Echuca at $7.5 million.
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