AUTOMOTIVE Holdings Group appears to be the beneficiary of a multi-million dollar property deal that is likely to reduce lease costs on four national dealership sites.

Its preferred property investment company, Charter Hall Group, last week bought four properties on which AHG has dealerships for $82 million.

Charter Hall will fold these properties into its second Direct Automotive Trust (DAT) that is now seeking $48 million from investors. The first DAT, launched last year, purchased three automotive retail sites-leased by AHG-on the east coast for $100 million.

The properties in the latest trust were bought by Charter Hall from various property owners, including interests associated with former AHG founder Vern Wheatley for the Big Rock Toyota site in Balcatta, WA.

AHG has a 15-year lease for the Balcatta, Liverpool and South Morang sites and a five-year extension for up to a further 20 years. The Mount Gravatt property, which has six franchises, has a 10-year lease and four five-year options.

It is understood that AHG has negotiated new leases for the properties which are believed to be more favourable than previous terms, in line with the easing of the property market.

A 4.4 hectares commercial property in Prestons, Sydney was also acquired by Charter Hall in August 2015 and is being developed at a cost of $43 million as the site for AHG’s east-coast corporate office and distribution centre.

The property was bought for $13.7 million and forms part of Charter Hall’s industrial fund.

By Neil Dowling