ASX-listed car dealer AP Eagers has offloaded its auto dealership in central Brisbane for $61 million to property developer Seymour Group.
AP Eagers, which holds a substantial portfolio of property valued at $280 million, has sold the 99 Breakfast Creek Road asset as it readies itself for a potential merger with Automotive Holdings Group.
The car dealership giant will continue to operate the business from the property following settlement, having entered into a seven-year lease-back.
It will be AP Eager's second lease-back type transaction of its Newstead properties this year, and comprises part of a broader transition away from inner-city dealerships toward "state-of-the-art" auto malls.
“The sale and leaseback of this property, on attractive terms, is consistent with our active approach to managing our property portfolio and underpins our strategic move to the world class Auto Mall planned for Brisbane Airport,” AG Eagers chief executive Martin Ward said.
The proceeds from the sale, combined with our other recent sale in Newstead, will generate a profit before tax of $26.1 million for AP Eagers, which will result in an annual profit contribution of $3.7 million.
The sale of the 18,070sq m site, with gross floor space of 12,485sq m, was managed by JLL agents Seb Turnbull and Luke Billiau.
The sites new owner Seymour Group is responsible for some of the city’s well-known developments such as Queens Plaza and MacArthur Chambers.
The company, which is now primarily run by his grandchildren, will now hold the 1.8 hectare inner-city which is primed for potential for future residential development.
“It's almost impossible to find a site so large and well located this close to the city”, Seymour Group director Kevin Seymour said.
“We're really excited about what's to come.”