Vinfast releases IM for sale of Lang Lang
AN INFORMATION Memorandum published by commercial real estate group CBRE shows Vietnamese car-maker VinFast is seeking expressions of interest for its Lang Lang proving ground just 12 months after purchasing the former GM Holden facility for AUD$36.3 million.
The IM says that the famed Holden Proving Ground is for sale via “private placement expressions of interest”, the campaign set to close on the 18th of November (2021), unless sold prior.
CBRE says the sale of Lang Lang represents a landmark Australian investment opportunity, the 877-hectare facility available across multiple titles suggesting the site could be broken up, with access via both the South Gippsland Highway, and the existing entrance at 44 Rayner Hoff Drive. The IM shows up to six allotments are available, ranging from 2.7 to 335.9 hectares.
Multiple testing, storage, and office buildings, with floor space totalling more than 11,920 square meters, are included in the sale, the IM picturing GMH’s former emissions testing facility alongside a graphic outlining the facility’s extensive 44km of mixed-purpose test roads, including the high-speed bowl used to showcase every new Holden range since the FC-series of 1958.
“Buildings vary in age from recently extended / refurbished or greater than 50 years old albeit very well maintained throughout. Significant capital has been invested into the buildings over the past 10 years delivering first class improvements with the most recent upgrade in 2018 costing approximately $7.2m to resurface the circular track,” the IM details.
“The four main warehouse facilities, which have been constructed onsite include propulsion systems, safety and emissions testing facility for the testing of a vehicle’s safety and emission features decommissioned Collision Barrier facility used to test vehicle’s impacts during a collision, and durability and vehicle testing garage for the purpose of certification and a storage warehouse.”
The IM also includes details of the agreement between current hirer Walkinshaw Automotive Group who have use of the facility until March 2022. Returns of up to $13,750 per calendar month are paid to VinFast for use of the facility’s general road systems, ride and handling course, circular track, and garage area indicating that investors may find opportunities to lease the facility to similar interests moving forward.
Details of capital works carried out at the facility are listed in the document which also outlines the technical specifications of the proving ground’s various roads including the high-speed bowl, 4WD circuit, global rough track, hill circuit, 98-metre skid pan, and ride/handling circuit.
“The balance of the property comprises a proving ground consisting of a vast range of vehicle testing courses which feature a combination of sealed and unsealed road networks and severe rough roads,” the IM says, even referencing the famous mid-facility “Chalet” as part of the sale.
At the time of purchase, VinFast credited the Lang Lang complex as one of the icons of the Australian automotive industry. The facility was refurbished and upgraded in 2018 and is regarded as one of the best vehicle-testing centres in the world.
At the time of its sale of to VinFast, the Lang Lang Proving Ground was the last in series of Holden-owned properties to go under the auctioneer’s hammer which included the 37.7-hectare Fishermans Bend manufacturing plant – which was sold to the Victorian state government for $130 million – and the Elizabeth manufacturing base in Adelaide – which was sold to developer Pelligra Group in 2017.
