Bunnings nets $40m for new Springfield store
A Bunnings Warehouse in Springfield is the latest to be sold and then leased back to the hardware giant as investors continue to clamour for properties with blue chip tenants.
A Melbourne-based private investor splashed more than $40 million to secure the asset in outer Brisbane, just three months after it opened its doors.
The sale of the 37,110sqm site, which includes the almost 16,000sqm retail outlet, came on a tight yield of 5.27% after an expressions of interest campaign.
Savills agent and national director of retail investments Peter Tyson says commercial property buyers have continued to jump at opportunities to access strong lease covenants from Australia’s largest retailers.
“The sharp result was not surprising and shows the depth of the market,” Tyson says.
“Assets of this pedigree do not often come to market in Queensland and tend to be very tightly held.”
The Springfield store, which sits opposite Orion Springfield Central shopping centre, about 30km south-west of Brisbane, was sold with a 12-year lease to Bunnings in place and further options available.
“Given the quality of the offer, we anticipated strong investor interest. The Bunnings lease is one of the most highly prized covenants in today’s market,” Tyson says.