City Holden will relocate its CBD operations to its Mile End service facility and three suburban showrooms
THE country’s highest volume Holden dealership is planning to relocate its CBD operations, 40 years after establishing a presence in Adelaide’s east end.
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THE country’s highest volume Holden dealership is relocating its CBD operations 40 years after establishing a presence in Adelaide’s east end.
City Holden will relocate its service centre to an expanded facility at Mile End, while retaining showrooms at Rose Park, Hillcrest and Nailsworth.
Since establishing a presence at the site of its Grenfell St showroom in 1979, the company - headed by the Newton family - has amassed close to a hectare of land between Grenfell St and Dawkins Place.
The expansive site will be put on the market in the coming weeks, representing one of the biggest CBD landholdings to be offered to the Adelaide market.
City Holden chairman Chris Newton said the decision to relocate was a response to the evolution in the way vehicles were sold.
“It was inevitable that the day would come when the cost of operating in the CBD would make operating the business in the city non-viable,” he said.
“When we opened the business in 1979 there were five Holden dealers in the CBD and many others representing other brands – now there are hardly a handful in total.
“The value of the properties, which we own freehold, are now too valuable to justify operating the business, coupled with land rates and taxes.
“Given the technology now being used by car buyers prior to purchase, there is also a trend emerging that the need for large display facilities is on the decline.”
In the eight months to August, City Holden sold more than 800 vehicles across its network, making it the highest volume dealer in the country. It generates annual revenue of close to $100 million.
Mr Newton is confident sales will remain unaffected following the staged relocation, beginning with the Pirie St service department which will move next month.
“In January, we opened a large service and parts facility in the retail precinct at Mile End so our first active relocation will be to move the CBD service and parts to that site,” he said.
“Following this, and within the next 12-18 months, we will relocate our sales and administrative divisions.
“We must emphasise that our existing three dealerships at Rose Park, Hillcrest and Nailsworth will continue to operate as usual.”
Offers in excess of $35 million are expected for City Holden’s CBD premises, which will be pitched to developers as four separate lots across a total of 9477sqm.
Colliers International’s Alistair Mackie, Paul van Reesema and Craig Shute will handle the international expressions of interest campaign.
Mr Mackie said last year’s $50 million sale of the 8712sqm Wakefield Hospital site was the biggest property sale, in terms of land size, to take place in the past 25 years.
“Development land located in the east end is becoming increasing difficult to come by,” Mr Mackie said.
“Adelaide’s east end is undergoing an exciting transformation with vacant sites and older style low rise buildings making way for new high rise residential apartments, student accommodation, and to a lesser extent modern offices.
“Not since 1993, and quite likely for decades prior, has there been a larger development site than the City Holden property portfolio offered for sale in Adelaide.”