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.

Chadstone Preston Motors

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 for $15 million, reflecting a yield of 4.37 per cent.

Interest in car dealerships has been spurred by car retailers reporting record profits. The high margins for car sales have translated to increased appeal for automotive investments.

Burgess Rawson’s head of Asian investment services, Zomat He, said the high demand for car dealership assets is being driven by the highly-motivated local Asian market.

“Three of the top four bidders for the Chadstone Ford site were Chinese citizens who were all looking for secure, long term, offshore investments and recognised the rare opportunity of such a large, high- profile, commercial 1-zoned landholding,” Mr He said.

“These groups were all attracted to the set-and-forget investment qualities, but all had an eye on the long term future of the site.”

Ringwood Mazda

By Neil Dowling