Eagers Automotive (ASX:APE) to aquire Castle Hill Site in Sydney

Company News

by Rachael Jones

Eagers Automotive (ASX:APE) has entered into an agreement to acquire a property in Castle Hill for $76.25 million.

It will buy the site from Charter Hall, from whom it currently leases the site.

AP Eagers plans to reconfigure the site over the next few years to optimize its dealership footprint via the accommodation of up to 8 automotive brands.

It said that the purchase will significantly reduce expenses, delivering an effective $15 million benefit before taking into account any new franchises or operating efficiencies.

Shares in Eagers Automotive (ASX:APE) are trading 1.2 per cent lower at $11.48.