Porsche Centre Brighton and Porsche Centre Doncaster hit the market

28 June 2024

In an unprecedented offering in Australia’s commercial real estate sector, PM Group is set to divest two of Melbourne’s most iconic car dealership freehold properties – Porsche Centre Brighton and Porsche Centre Doncaster.

The properties are leased to Penske Australia a wholly owned subsidiary of global automotive giant and Fortune 500 company Penske Automotive Group (NYSE:PAG), which recently acquired the dealerships’ operational businesses from PM Group. Both assets are underpinned by brand-new 12-year NET leases, with fixed rental increases, providing 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.

Porsche Centre Brighton is located on the prestigious bayside suburbs’ ‘Golden Mile of Cars’ at 855-859 Nepean Highway on a major 4,049 sqm landholding. Porsche Centre Doncaster occupies a high-profile site at 839 Doncaster Road, and is underpinned by a valuable Commercial 1 landholding of 1,674sqm in one of Melbourne’s most sought after eastern suburbs.

Mark Wizel, Managing Director of Advise Transact indicated, “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 remarked, “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.” Taylor added.

James Bergműller, Chairman of PM Group who have held the properties starting with Brighton in 2009, commented “Both Brighton & Doncaster are truly exceptional properties, however we are not in the property investment business, we are in the automotive business, and since our interest in the dealerships have been divested, the property has become non-core.” said.

JLL Retail Director Tom Noonan added, “These assets represent super-prime investments. On-market opportunities such as this rarely present themselves. 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 25th July 2024 at 3:00 pm (AEST).