Real Estate, Dealerships, News ,

THE sale of two Porsche dealerships in Melbourne has triggered the divestment of their properties, with owner PM Group engaging estate agents Jones Lang LaSalle (JLL) to list the separate freehold titles on the market.

PM Group recently sold the operational side of Porsche Centre Brighton and Porsche Centre Doncaster to Penske Australia, a wholly-owned subsidiary of global, listed car company Penske Automotive Group. 

James Bergmuller

PM Group chairman James Bergmuller said the properties have been held since PM bought Brighton in 2009.

“Both Brighton and Doncaster are truly exceptional properties, however we are not in the property investment business, we are in the automotive business,” he said.

“Since our interest in the dealerships have been divested, the property has become non-core.”   

Mark Wizel

Porsche Centre Brighton is located on the prestigious bayside suburbs’ ‘Golden Mile of Cars’ at 855-859  Nepean Highway on a major 4049 square metre site.

Porsche Centre Doncaster occupies a high-profile site at 839 Doncaster Road, and is underpinned by a valuable Commercial 1 landholding of 1674 square metres in one of  Melbourne’s most sought after eastern suburbs. 

Both properties are underpinned by new 12-year NET leases with fixed rental increases that JLL said provides “absolute income security and guaranteed net income growth.”  

JLL’s Stuart Taylor, Tom Noonan, Jarrod Herscu, and MingXuan Li have been appointed to run the public ‘expressions of interest’ campaign, with Advise Transact advising the vendor as transaction manager.    

Tom Noonan

Advise Transact managing director Mark Wizel said: “These properties have been highly sought after for as long as I have had the enjoyment of representing the freehold owners. 

“A recent sale of the business operations from our client to Penske Automotive Group has further strengthened the quality of the subject properties and their likely desirability to astute investors based both in Australia and abroad.”  

JLL senior director of Retail Investments, Stuart Taylor, said: “The assets represent an exciting opportunity, a first in Australia, for an investor to become the landlord of a Porsche dealership, a brand synonymous with prestige.”  

“We expect significant national interest in the assets, not only because of the trophy nature of the properties,  but due to the superb combination of high-calibre lease covenant, prime underlying freehold landholdings and  attractive net lease structure.”

JLL retail director Tom Noonan said that the properties “represent super-prime investments.”

“On-market opportunities such as this rarely present themselves,” he said.

“The last high-calibre luxury dealership opportunity of this nature was in 2018 with the sale of BMW South Yarra for $45 million.”  

Porsche Centre Brighton and Porsche Centre Doncaster will be offered for sale individually or ‘in one line’ by  way of ‘expressions of interest’, closing on July 25, 2024 at 3pm (AEST).

By Neil Dowling

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