Brisbane Bunnings the first to fire up investors in 2019
Owning your very own Bunnings warehouse may well be the ultimate renovator dream — especially if it earns over a million dollars in annual income.
This one comes close enough, with the 14,042sqm building and parking for 334 cars, rented out to Bunnings, which delivers a net income stream of $1.6775 million.
The deal has rent rising by 3% every year, staying ahead of inflation.
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The 3.09ha property at 445-451 Anzac Avenue in Rothwell is in one of the fastest growing regions in the country — Moreton Bay in Brisbane’s north.
Bunnings has an extended 15-year lease on the site to April 2024 “plus newly negotiated options extending to 2066 (previously 2048)”.
Agent Darren Beehag of Burgess Rawson says the property is getting strong enquiry levels with “only a handful” of Bunnings warehouses offered on the open market last year.
“The significant interest in the days since launching can be attributed to the scarcity of quality grade investment stock currently on the market,” he says.
His Brisbane-based colleague Pat Kelly says the site is “currently owned by an interstate investor and the new owner could be based interstate or even overseas for that matter, as there is very little hands-on day-to-day management to undertake”.
“A direct debit rental payment from Bunnings will occur monthly and all outgoings, repairs and maintenance are also conducted by Bunnings except for the land tax.”
So what does it take to keep a tenant like Bunnings happy?
The site has four street frontages, with a wide 230m Anzac Ave frontage — one of the main streets in Rothwell.
Having large capacity for parking is key and the building must be “impeccably presented”.
Recent upgrades to the site include fire services with a new water tank capacity to 409,000 litres as well as new pumps.
“Further renewable energy works including solar equipment on the building have been proposed by Bunnings,” the firm says in a statement.
The last time Burgess Rawson sold a Bunnings warehouse – located in Tasmania – it fetched $14.06 million at auction.
Expressions of interest for the Rothwell site close at 3pm on February 28.