The High Street home of the Preston Toyota dealership has been acquired by a major build-to-rent developer following a highly competitive sale campaign.
CBRE’s Nathan Mufale, David Minty and JJ Heng negotiated the sale of the 687 High Street site following an International Expressions of Interest process, which attracted more than 12 formal offers.
The 1.41ha property was sold on an unconditional basis with a lease to ASX-listed Eagers Automotive Limited, providing a net income of over $1,000,000 per annum.
“We were able to generate competitive participation from various buyer profiles, including domestic and interstate investors, landbankers and developers,” Mr Mufale said.
“The strong buyer interest resulted in a sub 3% yield on the income generated from the site. A key drawcard was the property’s location in a Priority Development Zone (PDZ), which provides for an intensive form of development and a range of alternative uses, subject to the relevant planning approvals.”
Mr Minty added, “This is the third development site sale our team has negotiated in as many months involving a build to rent operator, following transactions in Kensington and Maribyrnong. Combined the sales total over $80million and will provide for approximately 900 units to be constructed.”
Mr Minty said Melbourne was a key target for build-to-rent developers often underpinned by global institutions eager to participate in major projects.
“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.”
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