Another rare chance to buy a Bunnings

The Bunnings Warehouse at Colac in western Victoria.
The Bunnings Warehouse at Colac in western Victoria.

A Bunnings Warehouse at Colac regional Victoria is the latest in the highly sought after hardware chain’s stores to be offered up for investors.

And its sub-$10 million price is expected to ensure heavy interest, with most of the Wesfarmers-leased properties selling for well into the eight-figure range – some as much as $43 million.

The store in Western Victoria is leased to Bunnings for at least the next 10 years, with options to extend to 2035, and is currently owned by a local syndicate that developed the site in 2011.

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Bunnings stores have become increasingly hot property as investors chase their prized blue-chip leasing covenants, with most selling on yields of around 5% or less.

CBRE agent Justin Dowers, who is marketing the property with Kevin Tong, Mark Wizel and Joseph Du Rieu, says

“Bunnings Warehouse assets have been a highly sought after investment vehicle over the past two or so years – and given the fixed rental growth of 2.75% per annum and the secure lease in place, we anticipate this property to be well received,” Dowers says.

Lease Bunnings Colac retail Victoria

The Bunnings at Colac is leased for at least the next 10 years.

“The continued lack of retail investment opportunities, particularly in strong Victorian locations, has led to investors competing for regional assets – as was evidenced by Bunnings Yarrawonga at the back end of 2016, which sold on a sub-5% yield.”

Big box boom: Why investors are desperate to bag a Bunnings

Spanning 6500sqm and situated in Colac’s main commercial precinct, the Bunnings is near a Woolworths, Aldi and a soon-to-be-built Coles supermarket. It attracts annual rent of $475,090.

“The modern building at Colac will provide significant depreciation benefits to investors, however the real attraction will be the proximity to other national retailers located nearby. This will ultimately underpin the longevity of the investment through a critical mass of trade,” Du Rieu says.


  • $43.5 million – Joondalup, WA
  • $40 million – Springfield, QLD
  • $28.5 million – Mackay, QLD
  • $24 million – Eltham, VIC
  • $14.46 million – Ballarat, VIC
  • $11.59 million – Yarrawonga, VIC
  • $10.95 million – Swan Hill, VIC