7 Auto Dealership Freehold Investments

Investment Portfolio Auction Wednesday 3 April 2019 @ 11am, River Room, Crown Casino, Melbourne


Tenant Profile

A.P. Eagers Limited (ASX: APE) is a pure automotive retail group, founded in 1913, with over 145 dealership locations in QLD, NT, NSW, VIC, TAS and SA.
Since 2000, their sales revenue has increased from $500 million to $4.1 billion, profit after tax has increased from $4.3 million to $98.2 million in 2017 and the number of employees has increased from 600 to 4,342 currently.

AP Eagers represents a diversified portfolio of automotive brands, including all 20 of the top 20 selling car brands in Australia and 10 of the top 11 selling luxury car brands. In total, they represent 33 car brands and 11 truck and bus brands.

Core business consists of the ownership and operation of motor vehicle dealerships, providing full facilities including the sale of new and used vehicles, service, parts and the facilitation of allied consumer finance.


Lease Summary

The leases for all seven properties are identical in nature with the exception of rental. We summarise the essential terms as follows:

Tenant:
Motors Tas Pty Ltd, wholly owned subsidiary of A.P. Eagers Limited
Lease Term:
Ten (10) years
Lease Expiry:
31 March 2026
Options:
3 x Five (5) year terms extending to 31 March 2041
Rent Reviews:
Annual CPI reviews with market reviews at commencement of each option
Bank Guarantee:
An amount equal to six (6) months rent plus GST, noting this does not apply whilst Motors Tas Pty Ltd is the tenant
Outgoings:
Payable by tenant as per the lease
Net Rents#:
All estimated as at 1 April 2019 based on latest available Hobart CPI figures


Contacts

Darren Beehag
Billy Holderhead
Scott Meighan


Location Tenant Income pa

glenorchy

TAS

AP Eagers Limited

$186,151 pa

derwent park

TAS

Isuzu/Mack/UD/Volvo Trucks

$671,801 pa

burnie

TAS

Nissan/Holden/Honda

$455,767 pa

invermay

TAS

AP Eagers Limited

$235,398 pa

hobart

TAS

Holden/Hyundai

$972,641 pa

devonport

TAS

Holden/Hyundai/Nissan

$442,811 pa

launceston

TAS

Holden/Nissan/Hyundai

$883,423 pa