Bunnings hits the market at portfolio auction
A rare Bunnings Warehouse opportunity, a very unique childcare centre and a Target store are among the properties set to make Burgess Rawson’s upcoming Investment Portfolio Auction one of the agency’s most highly anticipated yet.
The newly redeveloped Bunnings at Lawnton, north of Brisbane, will be the headline act in the auction at Crown Casino on Wednesday, August 7, but an impressive array of other assets leased to major tenants will also vie for attention.
The Lawnton property is leased to Bunnings on a new 10-year deal, with options to 2067, and is just the third Bunnings to hit the market with sub-$20 million price expectations in the last three years.
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A Target Country store at Hamilton in regional Victoria is expected to ride its improved trading conditions and strong Wesfarmers lease to an impressive result, while a Coles Express service station at Ayr in Queensland is up for grabs after another Coles Express at Ipswich was snapped up at last month’s Burgess Rawson auction.
Burgess Rawson director Raoul Holderhead says the August auction will provide a “true test of the market”.
“Our two most recent auctions were during election week and in beginning of a new financial year, and both were successful, but this time around we’ve got a number of absolute premium properties across a number of commercial property sectors,” Holderhead says.
“The Bunnings speaks for itself and should fly out the door; we’ve already had good enquiry on many of the other properties that’ll be put on the block,” he said.
Among the other properties to be auctioned are a major Startrack distribution facility at Bendigo in Victoria and a three-level office complex leased to ASX-listed Dorevitch Pathology and a local water authority, also at Bendigo.
The Mount Barker childcare centre.
With demand for childcare at an all-time high after a centre at McDowall in Brisbane sold before auction after only six days on the market, another facility at Mount Barker in Adelaide could be one of the most memorable ever to hit the market, with an original heritage cottage forming a part of the stunning facility.
An entire commercial complex of five factory/office spaces at Bundoora in suburban Melbourne will be sold as one, a WA fast food outlet leased to pizza giant Domino’s is expected to see action among sub-$1 million investors, and a newly refitted funeral home leased to the largest funeral business at Mackay in regional Queensland will also be sold. The property has a new 10-year lease to Mackay Funerals, which was established 138 years ago.
“It’s very rare to have the chance to buy an entire commercial complex like the one in Bundoora, and for entry level investors you won’t get much better than the Domino’s in WA,” Holderhead says.
The Target Country store at Hamilton in regional Victoria.
“The childcare centre is one of the most impressive facilities you’ll find anywhere, coupled with the fact that childcare properties have had a major resurgence in the last six months.”
“We’re very, very excited about what we’ve got on offer for investors.”
Burgess Rawson’s 130th Investment Portfolio Auction will be held at Crown Casino’s River Room at 11am on Wednesday, August 7.
