A TASMANIAN motor dealership investment portfolio is heading to auction next month.
Knight Frank and Burgess Rawson are marketing seven Motors Tasmania sites across the state, and early feedback has indicated they could fetch in excess of $40 million combined.
Motors Tasmania has a long and rich history dating back to the early 1900s when the company started out selling Ford cars and tractors.
The dealership is owned by AP Eagers Limited, an ASX-listed automotive giant with 145 locations across six states and territories.
The properties heading to auction range in size from 2919sqm to 30,270sqm. They are in Hobart, Devonport, Burnie, Launceston, Invermay, Derwent Park and Glenorchy.
The leases for all of the assets are identical in nature with 10-year net lease terms to 2026 including options to 2041.
The net rents range from $186,151 a year for the Main Road Glenorchy site up to $972,641 a year for the Hobart CBD premises.
Knight Frank sales and leasing consultant Matthew Wright said an opportunity of this calibre was a rarity.
“We have and continue to look forward to receiving strong levels of interest and serious bidders come auction day,” he said.
Burgess Rawson director Darren Beehang said Motors had a $1.4 billion market cap and had been successfully trading for 106 years, factors that would appeal to buyers seeking a secure, long-term investment.
“Investor interest in the Apple Isle has never been more intense and we expect that the … dealerships will appeal to a similar investor base that saw the Glenorchy Bunnings site exceed expectations by over $5 million.”
The properties will go to auction on April 3 at Burgess Rawson’s Flagship Portfolio Auction in Melbourne’s Crown Casino. They will be sold individually.
Originally published as Dealership sales predicted to top $40m