A prominent motor dealership in Tweed Heads occupied by Sharp Motor Group was sold under the hammer at a Colliers International auction recently for $11.2 million, on a 6.21 per cent yield.
The building will remain a Sharp Motor Group dealership with a new eight year lease already signed.
“We received ten bids from four registered bidders on the auction day, with highest bidder being a Queensland based investor,” said Kyle Youngson of Colliers International who marketed the property with his colleague Steve Clark.
“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. It showcases Tweed Coast as a legitimate investment opportunity for buyers looking for growth areas.”
153 Wharf Street Tweed Heads offers a premium tenant in Sharp Motor Group with new car brands Kia, Honda, Holden, HSV and Suzuki in their line-up.
The property 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.
Mr Clark said they had interest from investors, syndicates, land bankers and small institutional buyers. “South East Qld 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 approx. 3,919sqm of building and sits on a 9,880sqm parcel of land combining new and used sales showroom, offices, servicing workshop, vehicle display yard and rooftop parking area.
Leased to Sharp Motor Group on a new eight year lease plus options it returns about $708,000 net per year after outgoings. Sharp Motor Group Dealer Principal, Stephen Howlett is also involved with prominent northern rivers dealerships Quayside Motors with locations in Lismore, South Lismore and Ballina. The property offered future development upside due to its B4 Mixed Use zoning, which allows for a mixed use high rise development up to 49.5m under the current Tweed Heads LEP.