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Prime Waitara car dealership hits the Sydney market

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In today’s market privately owned car dealership investments are hard to come by with several factors driving up new and used car prices. In fact, over the last 12 months new car prices have risen by 7.4 per cent and used car prices by 40 per cent when compared to February 2020. The current supply and logistics constraints, returning expat population, local demand for interstate road holidays, and a reduction in people wanting to engage public transport, has all led to the ‘perfect storm’ for car dealerships.

After 35 years, 47-53 Pacific Highway, home to Waitara Subaru, has come to market. The asset was purchased by well-known automotive business partners David Stevenson and Geoff Boyd-Boland in 1986. A few decades on, after establishing a thriving dealership, the Stevenson and Boyd-Boland families have made the decision to retire from the car industry with global automotive leader Inchcape engaging a long-term lease.

Matthew Meynell, National Director Investment Services at Colliers, and Tom Appleby, Director Investment Services at Colliers, anticipate investor and developer interest will directly correlate with the high demand for cars. In the current Covid-19 landscape everyday consumers are unable to spend money on alternate luxuries like international travel, this has led to the number of local car sales jumping by 28.3 per cent the six months to June, when compared to the same period last year.

 

“Astute investors covet the automotive sector given the scarce, secure and passive nature of these premium investments. Favourable fundamentals including a 5+5-year lease in place to pandemic-proof tenant, Inchcape, and 3.75 per cent fixed annual rent reviews, will ensure this opportunity is hotly contested. Buyer sentiment is quickly gaining momentum, with ‘Freedom Day’ fast approaching,” Mr. Appleby says.

 

Waitara has long been the automotive hub for Sydney’s Upper North Shore. Subaru’s neighbours include BMW, Mercedes-Benz, Mazda, Volkswagen, Toyota, AutoOne and Repco. In recent years Australia’s second-largest listed automotive retailer, Autosports Group, purchased the Mercedes-Benz dealership at 120-124 Pacific Highway for $12,500,000, and McCarroll’s Automotive Group secured 42-54 Pacific Highway from Toyota for $21,000,000.

"Given the vast majority of automotive assets are located in prominent locations, they’re now catching the eye of developers willing to land bank and strengthen their development pipeline. The retail freehold occupies a prime 1,435 sqm parcel of land that benefits from favourable underlying planning controls, which essentially future proofs the investment,” Mr. Meynell says.

 

Over the past 3 months there has been a flurry of activity in Waitara, with Colliers selling 83 Pacific Highway for $3,300,000, 8 Waitara Avenue for $1,600,000 and 12 Waitara Avenue for $1,980,000.


Related Experts

Tom Appleby

Director, Sydney Metro Sales | Investment Services

Sydney North

Initially joining Colliers in 2015 to work alongside National Director Jon Chomley as a Capital Markets analyst, Tom grew organically through the Colliers system, gradually applying his analytical skills, and gravitating towards, a sales role within the Investment Services team. Working closely with National Director Henry Burke, Tom established himself as a market leading commercial sales agent on the North Shore of Sydney. In 2020, Tom began leading the Sydney North Investment Services team.

Specialising in selling commercial / retail property (freehold and strata) and development sites (raw and DA approved) in the metro markets on the Lower and Upper North Shore, including the Northern Beaches, Tom has built a reputation for being a driven, personable, meticulous operator who is clearly passionate about real estate. Tom’s ongoing enthusiasm for the property industry mixed with his excellent communication skills and his honest approach to business has seen him regularly achieve results above client expectations.

Having grown up on Sydney’s North Shore, Tom possesses an intricate understanding of what’s happening in and around the Lower North Shore of Sydney, regularly attending local council meetings to stay on top of Council Governance.

Over the course of Tom’s 9 years’ in the property industry, Tom has developed a strong interest in site consolidations i.e. strata amalgamations and collective freehold sales.

Internally, Tom is actively involved in Colliers’ key initiatives, including Office Middle Markets, Portfolio Auctions and Restructuring Property Services (RPS), and forms an integral part of Colliers’ National Strata Practice Group and Colliers’ National Premium Investments Practice Group.

Tom sits on the Property Council of Australia’s (PCA) Future Directions Committee.

As at August 2022, Tom has been involved in over $545,000,000 worth of property sales.

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Matthew Meynell

Head of Investment Services | Australia

Sydney

As the Head of Australia’s largest investment sales team, Matthew drives industry leading initiatives across Middle Market Office assets, Offshore capital, complex workout solutions in the Restructuring and Insolvency space and is proudly backed by a team of over 80 professionals at the forefront of the industry.

Matthew’s investment into relationships sees him deliver revenue, exceptional results and always exceed his client’s expectations. By doing what’s right for the team, the greater Colliers business and his clients, he has established himself as an exceptional leader within the business and the property industry.

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