Servco sells EG another car showroom, maintenance centre with a leaseback
EG Funds Management is paying Servco $13.6 million for the Downtown Toyota car showroom and maintenance centre in Brisbane’s inner east Morningside.
It is the second asset of this type the purchaser has acquired from the vendor in two months – the other, in Sydney’s West Ryde, cost $22.9m.
Both investments offered value add-prospects and will be renovated and leased back to the motor group for 15 years.
The Queensland property traded on a passing 5.63 per cent yield. Factoring in the refurbishment, this increases to 6.2pc.
It will be slotted into EG Long Wale Property Trust No 1 which is forecasting 7.5pc distribution rising to 8.5pc across the seven year term.
“EG will continue to source investment from our Private Wealth division, providing investors with stable income cashflows and the potential for capital growth through various value-add strategies, which for this acquisition includes a major refurbishment of the existing dealership,” associate director, Capital Transactions, Sean Fleming, added (story continues below).
The Morningside property
On an 8324 square metre site at 739-753 Wynnum Road at the T-intersection of Junction Rd, the Morningside holding is three kilometres to the city.
It is about equal walking distance to Cannan Hill and Morningside train stations.
Servco – Australia’s largest Toyota dealer group – offered the investment with an initial 15 year leaseback via CBRE’s Capital Markets, Industrial & Logistics.
In July it sold a Toyota dealership and maintenance centre with a leaseback in New South Wales’ Dubbo to Primewest Diversified Income Trust No 4 for $12.5m.
