A Tweed Heads property in New South Wales occupied by Sharp Motor Group was sold for $11.2 million at a Colliers International auction.
The building will remain a Sharp Motor Group dealership with a new eight-year lease already signed, the Tweed Valley Weekly reports.
“We received ten bids from four registered bidders on the auction day, with the highest bidder being a Queensland based investor,” says Kyle Youngson of Colliers International.
The yield was 6.21%.
“This is a record yield for this type of asset on the Gold Coast and Tweed Coast, with both buyer and seller happy with the result,” Youngson says. “It showcases Tweed Coast as a legitimate investment opportunity for buyers looking for growth areas.”
The property at 153 Wharf Street offers a premium tenant in Sharp Motor Group with new car brands Kia, Honda, Holden, HSV and Suzuki in its line-up.
It was developed in 2004 by Expo Park Properties, linked to Warren von Bibra who operated the dealership as von Bibra Twin Towns Auto Village, prior to Sharp Motor Group taking over the business in 2011.
Steve Clark of Colliers International, who co-marketed the property with Youngson, says interest came from investors, syndicates, land bankers and small institutional buyers.
“South East Queensland continues to be seen as a great value option for interstate purchasers looking for stronger yields, which is reflected in this result.”
The property has 3919 square metres of building and sits on a 9880sqm parcel of land combining a new and used sales showroom, offices, a servicing workshop, a vehicle display yard and a rooftop parking area.
Leased to Sharp Motor Group on a new eight-year lease plus options, it returns about $708,000 net annually after outgoings.
Sharp Motor Group dealer principal Stephen Howlett is also involved with Northern Rivers dealerships Quayside Motors with locations in Lismore, South Lismore and Ballina.
The property offers future development due to its B4 Mixed Use zoning, which allows for mixed use high-rise development up to 49.5 metres under the Tweed Heads Local Environmental Plan.
Join the conversation