Autopact buys two yards from landlord
Major car dealer Autopact has bought two regional New South Wales yards from the landlord – paying prices reflecting a blended 5.9 per cent yield.
In the biggest deal, 115-121 Princes Highway and 1-3 McGrath Street, Fairy Meadow (pictured, top), a north Wollongong suburb, traded for $40 million.
On 2.02 hectares at the north west corner of Mount Ousley Road, and wrapping around a KFC on its northern boundary (McGrath St), it contains hardstand able to accommodate 100 car parks.
The showroom and workshop contain 10,300 square metres, trading as Gateway dealerships for Ford, Kia, Mitsubishi and Renault.
Autopact was on a lease expiring next year when it would have been presented with the first of two five year options.
Based on the income ($2.056m), the result reflects a 5.14 per cent net passing yield.
Autopact drops $56m
Meanwhile, neighbouring properties covering 49-71 Victoria Street, Dubbo, sold for $16m.
Divided by Bruce Avenue, they spread a total 1.91ha, with two modern showrooms containing 19,054 sqm trading Mazda, Mercedes-Benz, Mitsubishi and Nissan, trading as Western Plains Automotive.
Another building is under construction for Honda.
Autopact’s lease here also ended next year – but it only had one year option left.
It was paying $1.26m annual rent – putting the passing yield at 7.85pc.
“We set an ambitious target and exceeded it,” Next Commercial’s Anthony Bray, said.
“The response from local and national buyers shows the market appetite for quality large-format land rich retail,” he added.
“Autopact’s transition from tenant to owner is a strong endorsement of these locations,” according to the executive.
Co-agent Ryan Cross added the two leases were net, with the group picking up building improvement, maintenance, repairs and outgoings.
The vendor was Peter Terry Nominees.
Nationally, Autopact markets 37 brands out of 33 dealerships.
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