Four prime car dealership properties leased to the international listed automotive group Motus have been put up for sale – individually or in one line – offering buyers a string of prime commercial sites east of Melbourne.

The sites are:

• 5567 Princes Highway, Traralgon
• 5533 – 5535 Princes Highway, Traralgon
• 24-26 Commercial Drive, Pakenham
• 6-8 Koonwarra Road, Leongatha

The sale is being conducted by JLL Retail Investments, with Stuart Taylor and Tom Noonan managing the campaign

Mr Taylor said, “The dealership properties, which encompass passenger and commercial vehicle brands, are situated in Pakenham on Melbourne’s eastern fringe, Traralgon and Leongatha. Totaling more than 31,000 square metres, the sites are leased on 10-year terms with the earliest expiring in late 2027. Net operating income totals almost $2.5 million.”

The two sites in Traralgon, the fastest growing centre in the Latrobe Valley, are the jewels within this offering, accounting for 20,000 square metres and 9,386 square metres respectively and a combined net operating income of over $2 million.  

The former, at 5567 Princes Highway, incorporates brands Isuzu Ute, Mazda, Mitsubishi, GMSV, Subaru and Volkswagen, as well as a café and car wash. The latter, at 5533-5535 Princes Highway, is home to Mercedes Benz, Land Rover, Peugeot, MG and Suzuki.

The Pakenham site (1877 square metres) is exclusively for Isuzu commercial vehicles, while the Leongatha site (2060 square metres) combines Subaru and Isuzu Ute. Combined Net operating incomes are around $397,000 per annum.

Mr Noonan said, “Given the assets are offered individually or as a portfolio, we expect the properties to generate interest from a range of private and institutional investors. The portfolio offers a rare opportunity to acquire multiple assets in this sought-after sector, underpinned by one of the strongest tenant covenants in the automotive sales industry on a global level.”

Current tenant Motus was founded in South Africa in 1948 and is now a multinational group employing 17,000 people worldwide. Its Australian dealerships represent several famous car manufacturers, including Jaguar, Mercedes-Benz, Land Rover, Mazda, Volkswagen, MG, Suzuki and Mitsubishi.

The group has indicated it is looking at expanding its presence in Australia, underscoring its strong commitment to the Australian arm of its global enterprise and offering buyers potential entrée to further commercial opportunities.

Mr Taylor said, “Since the onset of the pandemic in Australia we have seen the car sales industry skyrocket, resulting in high volumes of sales and record profits. The high demand for cars has directly translated to increased investor appetite for automotive investments due to the strength of the tenant covenants, as well as these assets providing large landholdings and long leases.”

Gippsland, especially the southern and western areas with train and freeway connections to Melbourne, has enjoyed a boom in investment since the COVID-19 pandemic prompted Melburnians to seek new homes in regional areas.

The City of Latrobe (including Traralgon) is one of Victoria’s fastest growing centres, with its population forecast to rise by more than 34 per cent to 2041. The area is home to food processing and engineering industries, government agencies and education, with a new Federation University campus planned. Pakenham, too, is the scene of growth, with the new Pakenham East residential development set to increase the local population from 1500 to 23,000 by 2041.    

For further information contact the Agents below. Expressions of interest, individually or in one line, close on 14 July 2022.