Magic Car Wash founder sells two investments

The historic Glen Iris post office is now a Magic Car Wash cafe.

Magic Car Wash founder Claude Roda has sold two investments with a leaseback.

In the priciest deal, 1021 Burwood Highway, Ferntree Gully, traded to an Asia-based buyer for $2.7 million – a 5.2 per cent yield.

At the north west corner of Station St, between a KFC and 4-star hotel, the 1617 square metre parcel has two crossovers.

More than 10 years ago it was a Blockbuster store.

Ferntree Gully is about 30 kilometres east of Melbourne.

Meanwhile a second property, 250 La Trobe Terrace in Newtown, also sold last month – for $2.175m.

The site has frontage to Aberdeen St – adjacent to the Geelong border.

Based on the annual net rental return ($125,000), this deal reflects a 5.75pc return (story continues below).

Mr Roda listed them with a Glen Iris car wash at 1557 High St; all up the portfolio was expected to achieve about $7m.

CBRE’s Scott Hawthorne, Jing Jun (JJ) Heng, David Minty and Scott Orchard said given the prices achieved for the Ferntree Gully and Newtown assets, the vendor would retain the third one.

All were offered with a 10 year leaseback.

Sale proceeds will be used to buy and build more stock.

Magic Car Wash was established in 1994 and trades out of more than 50 outlets, many franchised.

Most of its holdings, including Ferntree Gully, Glen Iris and Newtown, are designed with a cafe.

The Ferntree Gully car wash replaced a Blockbuster store.
The Newtown property is at the corner of La Trobe Terrace and Aberdeen and Ryrie streets – the suburb divide with Geelong and South Geelong.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco