Tenant buys Ringwood car dealership

Ringwood Mazda backs onto Mullum Mullum Creek.

The operators of Ringwood Mazda have paid $15 million for the dealership and service centre they have occupied for two decades.

With the purchase, the owners can stop paying c$54,125 in monthly rent (given record low interest rates, any mortgage repayment is likely to come in at much less than that).

Eagers Automotive recently acquired a South Morang dealership it occupied.

The 8878 square metre property at 391 Maroondah Highway is at the centre of the suburb’s ‘golden mile’ – a row of car yards which includes Car City and a Mercedes Benz outlet.

The vendor, Coppersmith Group, controls seven hectares in the pocket including investments occupied by Etheridge Ford, Ringwood Nissan and Ringwood Volkswagen.

It is building another showroom, a multi-storey BMW dealership, which will be leased to Autosports Group.

Ringwood Mazda

Prior to Coppersmith paying $400,000 for 391 Maroondah Hwy in 1981, the property – then a paddock – was held by Patterson Cheney Holden.

Before Mazda moved in, the site was occupied by nursery businesses (story continues below).

The latest sale reflects a 4.33 per cent yield.

“Over the course of four decades, Coppersmith Group has built a landmark and growing hub of car dealerships in Melbourne’s east,” CBRE’s David Aiello, who brokered the off-market Ringwood deal said.

Last December, we reported Eagers Automotive paid Charter Hall $181.25m for nine yards it occupied including, in Melbourne, South Morang Toyota.

Two months ago, prestige used vehicle dealer Nick Theodossi, in a partnership, outlaid $50.5m for Docklands’ Subaru Interactive, with plans to part-occupy.

On 1.8 hectares, that asset was sold by London’s Inchscape, the world’s largest independent car retailer.

Subscribe to our newsletter at the bottom of this page.

Share or Recommend article

Marc Pallisco

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