Preston Toyota dealership sold for apartments

An apartment developer has purchased the Preston Toyota dealership.

Build to Rent developer Make Ventures is paying McMillan Property c$40 million for the Preston Toyota dealership.

It is a tactical play, with the 1.4 hectare property leased to Eagers Automotive for up to 15 years with options.

Altis and Aware Super recently purchased 14 High Street, Preston (outlined) for a Build to Rent project.

Based on the present net annual return ($1,082,345), the purchase price reflects a c2.7 per cent yield.

Longer term, the land could make way for over 500 apartments in several towers along with significant ground floor retail, office and social infrastructure product.

CBRE’s Nathan Mufale, David Minty and JJ Heng marketed the property, 687-705 High Street, at the south west corner of Regent.

Another BTR project for the north

Mr Mufale said a mix of domestic and interstate investors, land bankers and developers proposing a variety of product, looked into the Preston Motors dealership.

“A key drawcard was the property’s location in a Priority Development Zone, which provides for an intensive form of development and a range of alternative uses, subject to the relevant planning approvals,” according to the executive (story continues below).

The Preston Toyota dealership, at the south west corner of High and Regent streets.

Mr Minty added the property is the third site the group has sold to a BTR developer in as many months following deals at Kensington, for nearly $50m to Macquarie Asset Management, and Maribyrnong ($22m).

“The underlying drivers of Melbourne’s apartment market are strong, which is fuelling demand for BTR opportunities, underpinned by the city’s estimated long term population growth, a severe lack of new supply and Melbourne’s ever-growing housing affordability issues,” he said.

The 687 High Street sale comes a week since Altis with Aware Super paid $14.04m for a 3029 sqm block at #34 in the street, also with plans for a BTR project.

Also in Melbourne’s north, earlier this month Assemble, a subsidiary of Make Ventures now 25 per cent backed by AustralianSuper, won approval to build 199 units of this type at 15 Thompson St (formerly known as 88 Stubbs St), Kensington – a site purchased for $17.75m in 2019.

Today we are reporting US property giant Hines is outlaying c$30m for a North Melbourne BTR block.

Seven months ago Hines outlaid c$16.5m for a Brunswick industrial parcel, also for a product of this type.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of