Servco has sold another Toyota car dealership with a leaseback – this time to EG, which will refurbish it.
The West Ryde showroom and service centre at 1044-1050 Victoria Road – on the east and west side of Riverview Street – is trading for $22.92 million.
Based on the net passing annual rent post-renovation, the sale price reflects a c5.5 per cent yield.
CBRE was the marketing agency.
Dealership earmarked for Yield Plus Infrastructure 2
The West Ryde asset will be tipped into EG’s Yield Plus Infrastructure 2 fund, which has a c$750m mandate.
The four year old trust chases yield producing real estate with repositioning potential.
The West Ryde dealership spreads 6554 square metres in a pocket the local council recently proposed should be revitalised, near the suburb’s train station, library, community hall and a retail strip (story continues below).
Coincidentally, the purchaser of the latter retail asset, Primewest, recently paid Servco $12.5m for the renovated Dubbo City Toyota and Lexus dealership and service centre (pictured, right), also with a leaseback.
Income and development upside: EG of Ryde Toyota site
West Ryde is about 15 kilometres north west of Sydney.
The Victoria Rd dealership was offered with a 15-year leaseback to Servco.
EG associate director, Sean Fleming, said the chance “to acquire a property with a long-term lease …and proximity to the West Ryde railway station, town centre and major community infrastructure such as Macquarie University and Western Sydney University, is rare”.
“The property should provide long term stable cash flows for our investors with the potential for capital growth due to its strategic location,” the executive added.