Chinese buyers hunt for dealerships

The sale of the Chadstone Ford and Hyundai dealership site last month for $32.6 million was reported by the agents as being a record for Australia’s car dealership sector, achieving a yield of 3.32 per cent.

The site included a Hungry Jack’s restaurant which, together with the dealership, recently renewed its lease on a 10-year plus five-year term.

Co-agents Burgess Rawson and Gross Waddell ICR handled more than 260 inquiries resulting in 13 bids for the 6953 square metre freehold investment – the largest commercial 1 zoned site in the precinct – located 13km from Melbourne’s CBD.

The site was sold by Preston Motors. It was purchased by a mainland Chinese investor.

Preston Motors CEO, Robert Gattereder, said the Ford and Hyundai dealership businesses were sold last year.

In other sales, earlier this month a Subaru dealership in Waitara, north of Sydney, sold for $8.12 million achieving a yield of 5.64 per cent.

Burgess Rawson sold the Sunbury Ford dealership in Victoria for $9.61 million, reflecting a yield of 5.20 per cent.

In July, the Mazda dealership in Ringwood, east of Melbourne, sold off market to the tenant got $15 million, reflecting a yield of 4.37 per cent.