The 1.41 hectare site is earmarked for development as apartments, said a report by property publication Realestate Sources, with an estimate that it could hold up to 500 residential units plus retail and commercial space. 

However a spokesman for Eagers said his company was yet to receive any formal confirmation that the site has been sold.

Further, it appears Eagers – which has the lease until 2033 at the current rate of $1.08 million a year – is in no hurry to move out.

Eagers’ executive general manager of Victoria and Tasmania, Serg Buccilli, told GoAutoNews Premium that leaving the location – even before the sale – had not been discussed by his company.

“This is a very successful dealership,” he said.

“We average about 150 new and used cars a month and it is a strong business. Our guests enjoy coming to our Preston site and will be able to do so for many years to come.”

Image source: Google

Mr Buccilli said that in addition to sales and administration, the dealership has a large service workshop, spare parts and body repair centre for its customers.

Eagers has another Toyota dealership at South Morang, about 25 minutes from Preston.

Preston Toyota is at 687 High Street. It was previously owned by Automotive Holdings Group Ltd (AHG) and became an asset of Eagers when the latter bought AHG in September 2019. 

Prior to AHG it was Gary McMillan Toyota. The McMillan family this month sold the property to Make Ventures after owning it for about 50 years.

The suburb of Preston, about 10km from the Melbourne CBD, is one of the latest zones to be targeted by residential development by build-to-rent companies.

CBRE negotiated the deal for the sale after the property was put on the market in August last year. CBRE property representative David Minty said in a report that Melbourne was a key target for build-to-rent developers.

“The underlying drivers of Melbourne’s apartment market are strong, which is fuelling demand for build-to-rent opportunities, underpinned by the city’s estimated long-term population growth, a severe lack of new supply and Melbourne’s ever-growing housing affordability issues,” he said.

Image source: Google

By Neil Dowling