Multi-level Collingwood car showroom to fetch $40m
The Sydney Morning Herald
The flagship Hoddle Street site of one of Melbourne’s best known Honda, Nissan and Hyundai auto dealerships has been put on the market by businessman Tony Jowett.
The upmarket dealership’s three-level building with rooftop parking on the corner of busy Hoddle and Langridge streets in Collingwood features a distinctive multi-level corner display for the group’s marquee cars.
The site, selling with a flexible lease back arrangement, is expected to fetch around $40 million. Jowett Properties bought the site from Coles Group in 2008 for $4.6 million, title documents show.
The Jowett Motor Group runs three car showrooms, one each for Honda, Nissan and Hyundai, and a major car service centre on the property.
They sit on a large 5393 square metre site across two titles at 21-53 Hoddle Street that is likely to catch the eye of developers keen to cash in on Collingwood’s newfound status as a go-to office and residential precinct.
The group also operates a BMW dealership in Glen Waverley, another Honda dealership in Doncaster and a third Honda centre in Glenelg, South Australia.
Mr Jowett said he was offloading the Collingwood site as part of a broader strategy to reinvest in the car business and grow its market share.
CBRE and ICR Property Group have been appointed to handle the sale.
Other upmarket city car dealerships, also sitting on valuable development sites, have taken a different approach, striking deals that include state-of-the-art car showrooms in redevelopment plans.
Hong Kong's Lei Shing Hong, the world's largest distributor of Mercedes-Benz, intends to combine a 30,000sq m office above a vehicle showroom on a site it purchased at 264-274 Sturt Street in Southbank from the University of Melbourne for $52.1 million.
And Malaysian-backed developer Beulah International struck a $101,008,888 partner-style deal with BMW that will see the famous marque retain a 2000sq m presence on the corner of Southbank Boulevard and City Road as it is redeveloped.
CBRE’s Julian White said Collingwood’s population was being boosted by a period of intense development activity.
CBUS Property is constructing a $130 million, 14-level residential tower on a Cambridge Street site that was formerly the home of left-leaning The Monthlymagazine.
Developer Tim Gurner recently sold two penthouse apartments - one for $6.75 million and the other for $7.5 million - at his $280 million Victoria and Vine project, also in Cambridge Street.
PACE has a residential project in Wellington Street and global real estate player Hines is proposing a $200 million prefabricated timber office on another site down the road.
ICR's Raff de Luise said projects were enjoying sales success as the area's residential and commercial markets matured.
THE SYDNEY MORNING HERALD – 24th July 2019 – Commercial Real Estate Section – Simon Johanson https://www.smh.com.au/business/companies/multi-level-collingwood-car-showroom-to-fetch-40m-20190723-p529x3.html