Leaseback to secure tenant and site’s development potential attracts buyer.
The freehold for one of Perth’s best known motorcycle dealerships has sold for $5.7 million.
The commercial property on adjoining sites in Dianella, which was owned and occupied by national retailer Fraser Motorcycles, was purchased by a private buyer from Malaysia.
The showroom was sold by Colliers International director Nicholas Agapitos who said there had been strong interest in the sale, which included a three-year leaseback to Fraser Motorcycles.
“The sale represented a yield of 6.5 per cent and was the buyer’s first foray into WA’s commercial property market,” Mr Agapitos said.
“The Perth motorcycle dealership has been operating for close to 25 years and the buyer was attracted by the security of a long-term tenancy to an established business.”
Mr Agapitos said several offers were received during the campaign.
“The property’s size and frontage to three roads also offers significant development potential,” he said.
The property includes a 3054sqm showroom and has a total area of 6738sqm across two titles—45 Walter Road West and 3 Cleveland Street.
The land at 45 Walter Road West is the bigger of the two sites at 4851sqm and has street frontage to Harold and Cleveland streets. The site at 3 Cleveland Street is 1887sqm.
Fraser Motorcycles is licensed to sell Ducati and Harley-Davidson motorcycles and has occupied the high profile corner on Walter Road West since 1992.
Established in 1955, Fraser Motorcycles is a family-owned business with six dealerships around Australia. It also sells motorcycle parts and apparel and pre-owned motorcycles.