EG is pleased to announce the acquisition of 1044-1050 Victoria Road, West Ryde NSW for $22.92 million.
The freehold property comprises a Toyota car dealership showroom, service and repair centre over approximately 6,554sqm of land. The property is being sold with a 15-year leaseback to global car dealership group Servco, who are one of the largest Toyota dealership groups in Australia.
As part of the transaction, EG will undertake an extensive refurbishment of the property for the Lessee to bring the property to a modern Toyota standard. The net passing yield post completion of the works will be approximately 5.5%.
“The opportunity to acquire a property with a long term lease to a strong covenant such as Servco, and proximity to the West Ryde Railway Station, town centre and major community infrastructure such as Macquarie University and Western Sydney University, is rare,” said EG Associate Director, Sean Fleming. “The opportunity should provide long term stable cash flows for our investors with the potential for capital growth due to its strategic location. Ryde City Council’s recent revitalisation proposal for the area should also enhance the long-term value of the property.”
The asset will join the growing Yield Plus Infrastructure No.2. fund which was launched in August 2016 with a $750 million real estate mandate. The fund strategy seeks to acquire a portfolio of yield producing real estate with repositioning potential for new or upgraded infrastructure.
The transaction was brokered by CBRE.