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ASX listed car retailer Autosports Group Limited (ASG) has agreed to acquire the property at 586 Wickham Street and 10 Light Street, Fortitude Valley, where it currently operates dealerships for Audi, Bentley, Lamborghini and Maserati .
Through its wholly-owned subsidiary, Prestige Group Holdings Pty Ltd, ASG has entered into an agreement with Dexus Wholesale Management Limited, as trustee for Dexus Wickham Street Trust (Dexus) to purchase the land and buildings in Central Brisbane.
The 7,793 sqm property is a purpose-built automotive dealership comprising showroom, service and parts facilities. The purchase price for the property is $98 million plus stamp duty. ASG says it intends to fund approximately 80% through existing financiers and the balance through cash reserves.
ASG says it has occupied the 586 Wickham Street property under a lease from Dexus since 2016.
The lease expires in 2026 and has two additional 5-year options. On settlement, ASG says this acquisition is expected to save the group rental payments and tax surcharges which were passed on to the tenant as an outgoing.
It says the acquisition of this property delivers on ASG’s property strategy of controlling strategically important retail sites, improving capacity to actively manage retail locations, utilising OEM financiers to preserve capital, improving balance sheet strength and gradually reducing occupancy costs.
This purchase brings ASG’s total property holdings to approximately $196,600,000. The acquisition is conditional on obtaining a replacement Council permit. Completion of the property acquisition is scheduled for June 15, 2023.
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