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- Eagers Automotive (APE) has entered an agreement to purchase a Sydney site for just over $76 million from Charter Hall
- The site is located in Castle Hill and covers 43,000 square metres
- Eagers will transform the site so it can accommodate up to eight brands plus the relocation of the Sydney- based EasyAuto123 and Carlins operations
- The purchase will transition the company from leasing to owning a site and will deliver a $15 million benefit over the existing lease term
- The deal is expected to be finalised in January 2021
- On the market this afternoon, Eagers is down 0.77 per cent and is trading for $11.53 per share
Eagers Automotive (APE) has entered an agreement to purchase a Sydney site for $76.25 million from Charter Hall.
The site is on a 43,000 square metre block and is located on Castle Hill, which is in a prime location.
However, the property is currently poorly configured and under-utilised with three extra large storage rooms, 67 service bays and a number of outdated factory units.
As a result, Eagers plans to reconfigure the site over the coming years in order to optimise the dealership’s footprint by accommodating up to eight automotive brands, while also relocating the EasyAuto123 and Carlins Sydney-based operations to the site.
The purchase will transition the company from leasing to owning its sites and deliver a $15 million benefit over the existing lease term.
Additionally, the relocation of EasyAuto123 and Carlins will deliver a further benefit and will remove $2 million every year in external rent.
The acquisition is expected to be finalised in January 2021.
On the market this afternoon, Eagers is down 0.77 per cent and is trading for $11.53 per share at 2:46 pm AEDT.
