The strong momentum for car dealership investments continues with a blue-chip Ford dealership hitting the market. Etheridge Ford in Melbourne’s eastern suburb of Ringwood is available for sale by International Expressions of Interest with co-agents Burgess Rawson and CBRE marketing the property.
Burgess Rawson Partner Billy Holderhead said that the substantial 14,084sqm property presents an ideal ‘Golden Mile’ landbank opportunity.
“It is incredibly rare for a site of this size and calibre to hit the market,” said Mr Holderhead. “Strategically, the dealership is in the heart of the premier automotive precinct in Melbourne’s east with high profile exposure to Maroondah Highway.
“Etheridge Ford is the only Ford dealer in the Maroondah Highway-Whitehorse Road growth corridor,” said Mr Holderhead.
Mr Holderhead said that interest in the property will be especially high following the recent outstanding sale of the Ford and Hyundai dealership at Oakleigh which sold for the record price of $32.6 million, achieving a yield of 3.32%.
“A number of underbidders were left wanting,” said Mr Holderhead. “Investors and developers are circling and looking for large, blue-chip locations with excellent future development opportunities exactly like Ford Ringwood.
“The fundamentals are all there: scale; great access and exposure; and favourable planning controls.” CBRE Associate Director Nathan Mufale said that interest is anticipated locally, as well as overseas.
“As a premium property, we expect top end investors to take a long look at this one,” said Mr Mufale. “Interest in high performing car dealerships is certainly strong, so all eyes will be on Ford Ringwood as a hugely successful, family owned and operated business, trading strongly for over 30 years.”
The property includes a favourable Commercial 2 zoning, with low 25% site coverage and outstanding future development potential.
“The dealership has a renewed 7-year lease with no further options, so the opportunity for future expansion or redevelopment is very tangible,” said Mr Holderhead.
“There are several development precedents located within the Ringwood auto precinct, providing positive implications for future development in the area. As the land size is considerable and the zoning is flexible, it really opens the door to a wide range of development options.”
Mr Mufale agrees, saying that the strategic location is ripe for redevelopment.
“It is a fast changing landscape in Ringwood,” said Mr Mufale. “Population is forecast to grow by 34% in the next 20 years and there is a concentrated level of development planned or in progress including high-density residential development, such as Eastco and Eastland expansion.
“Eastland Shopping Centre, Ringwood Square Shopping Centre, and Eastlink Freeway are all within 3.4 kilometres.”
The property comprises a showroom, offices, mezzanine, workshop, retail front and reception canopy. Annual net income is $755,478 per annum.
Ford Ringwood is for sale by Expressions of Interest closing at 3pm AEDT on Friday 26 November 2021.
