Fund sweeps up $38m Victorian car dealership portfolio
EXCLUSIVE
Plantation Capital has bought the final asset in a four-property car dealership portfolio, backed by Motus, in regional Victoria, offered in mid-2024.
For the Strategic Opportunities (Growth & Income) Fund, the manager paid $3.5 million for a sprawling 2060 square metre yard at 6-8 Koonwarra Road – also the South Gippsland Highway – in Leongatha (image, top).
With 1103 sqm – and 93 metres street frontage – the property includes showrooms for Isuzu Utes and Subaru.
Johannesburg-listed Motus is on a lease expiring in 2032 with options,
The present agreement includes fixed CPI-linked rent rises.
Based on the annual net income ($242,800), the result reflects 6.94 per cent net passing yield.
The comparable return when it was listed two years ago was $231,336.
Also today, we are reporting Vietnamese car maker VinFast sold the ex-Holden proving ground at Lang Lang, for a major loss on what it paid GMH in 2020, before deciding against expanding to Australia.
Plantation lays roots in South Gippsland
The Koonwarra Rd deal brings the Strategic Opportunities (Growth & Income) Fund investment in the four assets to $38m.
Three Traralgon properties were completed in two transactions.
The priciest – 5567 Princes Highway – worth $23.5m, settled last May (continues below).
This two-hectare holding contains 7773 sqm of showrooms, offices and service areas with dealerships for Isuzu, Mazda, Mitsubishi, Subaru and Volkswagen.
Motus is on a lease expiring in early 2028 or, with options, in 2038.
The other two investments, 5533 and 5555 Princes Hwy, cost a total $11m in late 2024.
The former has about three years remaining on its lease, while the latter has about four years.
Plantation sweeps up portfolio
Motus Australia employs about 700 people 38 passenger dealerships.
The portfolio gives the Plantation fund a concentration in two major South Gippsland centres.
Leongatha is about 135 kilometres south-east of Melbourne’s CBD.
Traralgon is a little more (c160km) – but they are about 60km apart as-the-crow-flies.
Stonebridge Property Group’s Rorey James and Kevin Tong with Wilson Property RCI’s Ben Wilson and Emma Dune marketed the portfolio.
Melbourne-based Plantation is chaired by property investor and author Steve McKnight, also its chief executive.
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