Showroom/Car Wash
5535 Princes Highway has two dealership buildings: MG/Suzuki in one building, and Land Rover/Jaguar in another. The property has prominent Princes Highway frontage on the Melbourne approach to Traralgon, accessible via a service road. This service road access is considered a benefit.
The property forms part of the large regional centre of Traralgon, located in and governed by the Latrobe Shire Council. Traralgon is situated on the Princes Highway and is approximately 165 kilometres east of the Melbourne CBD. Traralgon includes a variety of education providers and levels, a number of sporting facilities and recreation activities, and parks and gardens, as well as the Latrobe Regional Hospital.
The site is leased to an entity controlled by Motus Holdings Limited (JSE:MTH) which has a reported market cap of 21.29n ZAR (USD1,206,242,645).
The property is subject to a lease to “VSL Motors Pty Ltd” (subsidiary of “Motus Australia”) that commenced 1 January 2019 for an initial term of 10 years with 5+5 year options thereafter.
The combination of this prime location, with medium-term income and an attractive cap rate, makes this an attractive purchase for the Fund.
Financial Information:
Disclaimer: Information provided about forecast annual net cash flow and cash on cash returns are derived from unaudited financial projections. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Responsible Entity. The Responsible Entity cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.
| Property type | Showroom/Car wash |
| Date acquired | 4/12/2024 |
| Land size | 4,693m² |
| Building size | 1,405m² |
| Purchase price | $5,600,000 |
| Independent valuation | $5,600,000 |
| Capitalisation rate used by Valuer | 6.78% |
| Valuation date | 16/10/2024 |
| Occupancy at purchase date | 100% |
| Financing | All cash purchase |
| WALE (Lease Expiry) | 4.21 years |
| WALE (Income) | 4.21 years |
| WALE (Lettable Area) | 4.21 years |
The weighted average lease expiry (WALE) is as at 16 October 2024 on the basis of the property as a stand alone acquisition, not its weighting in the Fund’s total portfolio. More recent information about the the Fund’s portfolio can be found here.