Property giant Dexus buys Audi Centre in Fortitude Valley

AN ASX-listed property giant has parked its money in the prestige car market in what has been described as a “landmark” deal for Fortitude Valley.

The Audi Centre Brisbane and The EuroMarque Complex at 586 Wickham St, Fortitude Valley.

ASX-LISTED property giant Dexus has parked its money in the prestige car market in what has been described as a “landmark” deal, with purchase of the Audi Centre Brisbane and The EuroMarque Complex in Fortitude Valley.

Dexus will pay $91.2 million for the property at 586 Wickham St, in a deal that realised an initial 6 per cent yield.

It is understood the state-of-the art property, which houses an array of prestigious brands such as Audi, Lamborghini, Maserati and Bentley, will be put into a Dexus industrial fund.

CBRE’s Mike Walsh, who marketed the property with colleagues Peter Court and Tom O’Driscoll and Cushman and Wakefield’s Glen Wright and Nick Spiro, said it was an important deal for the Brisbane fringe market.

“The scale of the deal, the record-breaking yield and the profile of the asset itself combined with the end buyer all contributed to ensuring that the sale of the Audi and EuroMarque Complex is a landmark transaction for the Brisbane market in every sense,” he said.

“In my view it’s a huge sign of confidence for our fringe market that the country’s biggest landlord fought off stiff competition domestically and offshore to secure the asset.

“While it’s potentially up to 18 years away, I’m excited to see what the future of this property holds when Dexus can eventually trigger the development possibilities that exist with it.”

The property features a building area of 13,288sq m and a hardstand and external area 2556sq m. It is on a 7123sq m site with three street frontages and future development potential of up to 20 levels.

A crucial part of the deal was the lease recommitment last year by the ASX-listed Autosports Group to the end of 2026 plus two five-year options. Dexus will collect a net passing income of $5.472 million a year.

Mr Court said the marketing campaign produced nine offers and was reflective of the major property companies positioning themselves for the next cycle.

“The pricing achieved demonstrates committed investors willingness to push traditional hurdle rates in order to gain a foothold in the Brisbane market,” he said.

Mr Wright said there was strong interest overseas in the property.

‘It’s a massive site with huge development potential because of its underlying land value,” he said.

“This sale represents the appetite the market has for good assets.

“There’s not a lot out there with a long WALE (weighted average lease expiry) and if there’s something out there it will get a keen price.”