Bunnings offloads new Joondalup store for $43.5 million
It’s been years since a Bunnings Warehouse was put up for sale in Western Australia, so it’s no surprise that buyers came from the clouds when one hit the market north of Perth.
An investor picked off the Bunnings-owned property in Joondalup for $43.545 million through buyers advocates DBR Property Services, on a yield of 5.5%.
The 2.65ha site features more than 17,000sqm of floor space and 416 car spaces, and will be leased back to Bunnings for the next 12 years, with an initial annual rent of $2.395 million.
Melbourne CBRE agents Mark Wizel and Justin Dowers and Perth Capital Markets team Ben Younger and Andrew Woodley-Page facilitated the sale of the brand new store, which lies 28km of Perth’s CBD.
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CBRE senior director Wizel says that while Perth’s commercial property market remained in a slump, leases to blue-chip tenants like Wesfarmers were still highly sought-after among investors.
“While buyer confidence appeared to be more subdued at the start of the year, this result demonstrates the underlying appetite investors have for well-leased retail assets,” Wizel says.
“The quality of this asset, and specifically its location and lease terms, were appealing to buyers and overcame concerns about the softer economic conditions in Western Australia.”
Dowers says investors from both the east and west coasts were among those vying to get their hands on the property.
“The depth of the buyer interest came as no surprise in light of previous Bunnings Warehouse sales, which have generated consistently strong investor demand. This is a strong result that shows confidence in the property market and in Bunnings assets,” he says.
The quality of this asset, and specifically its location and lease terms, were appealing to buyers and overcame concerns about the softer economic conditions in Western Australia
“We were delighted to receive 14 offers to purchase, with a number of strong offers from interested parties.”
The sale continues Bunnings’ ongoing strategy to manage its property portfolio by divesting key stores across Australia.
Among the recent deals, a Melbourne-based private investor paid more than $40 million in November to buy the hardware giant’s new Springfield store in Brisbane’s south-west.