Buy a Bunnings: Mega site hits market amid rezoning windfall, another store sells early

Lowest prices might be just the beginning at Bunnings Warehouse, but given the size of the site where the hardware giant sits in Ulladulla, it’s likely to fetch top dollar.

The 10,800sq m landholding at 131 St Vincent St in the NSW South Coast town, has recently been rezoned to MU1 Mixed Use, unlocking development potential of up to 21m in height with an expansive floor space ratio and 113 car spaces.

The 10,800sq m landholding at 131 St Vincent St has recently been rezoned to MU1 Mixed Use. Picture: Realcommercial.com.au

As a result, the planning framework could accommodate a new lucrative precinct with around 38,000 sqm of gross floor area, combining retail, commercial, or childcare.

In a prime position within Ulladulla’s main commercial hub, close to the harbour, schools, and town amenities, the Bunnings site also stands to benefit from major infrastructure projects already reshaping the region. One such local improvement is the $940 million Princes Highway Milton-Ulladulla Bypass, plus ongoing hospital upgrades in the area.

Listed through an international expressions of interest campaign led by Knight Frank’s Ben Churven, Raffi Zilifian and Nathan Dunn, the property has no public price guide.

The property is situated in a prime position within Ulladulla’s main commercial hub, close to the harbour, schools, and town amenities. Picture: Realcommercial.com.au

Churven said the divestment followed a successful rezoning process that would see future development applications assessed under the State Significant Development pathway.

“This is one of the largest and most significant development opportunities ever brought to the South Coast market,” Churven said.

“With planning controls now in place, coupled with the current housing challenges we’re facing, it has the potential to redefine Ulladulla’s town centre as a vibrant, sustainable and liveable coastal hub.”

The Knight Frank agent added that the scale and strategic position of the property would appeal to developers, institutional investors and mixed-use specialists looking to capitalise on the region’s accelerating growth.

The passing income of the Bunnings site is in excess of $750,000 net a year and there is currently a four-year lease remaining on the site. Picture: Realcommercial.com.au

“Sites of this size and zoning are almost unheard of in coastal NSW,” he added.

“This is the type of opportunity that comes along maybe once in a generation.”

According to NSW Government projections, the Shoalhaven region is entering a population boom, forecast to grow by 23% to around 140,000 residents by 2046. The Milton-Ulladulla area has been identified as a key centre for housing, employment and services, as the South Coast continues to attract steady migration from house hunters priced out of Sydney, Wollongong and Canberra.

According to Knight Frank, the passing income of the Bunnings site is in excess of $750,000 net a year and there is currently a four-year lease remaining on the site, with another 20 years of options. Despite the ongoing lease on St Vincent St, Bunnings has reportedly earmarked another Ulladulla location for a future store.

The site has been listed for sale through an international expressions of interest campaign. Picture: Realcommercial.com.au

The timing of the super site’s release coincides with a wave of regional investment and planning aimed at future-proofing the South Coast’s economy. Improved connectivity via the bypass project is expected to further enhance Ulladulla’s role as both a tourism gateway and a regional business hub.

Zilifian added that the potential to create a true mixed-use precinct, thanks to the sheer scale of the Bunnings site, was the major drawcard of the campaign.

“This site lends itself to something special – a place that blends coastal living with economic opportunity,” he said.

The expressions of interest period for the Ulladulla site closes at 4pm on Thursday November 13.

Panda Mart has recently opened in a former Bunnings site in Prestons. Picture: realcommercial.com.au

Life after Bunnings has proven to be an adventure for former locations of the retail behemoth. One property in Prestons, Victoria was recently transformed into a Panda Mart, the discount megastore referred to as “real life” Temu. Befitting its colossal footprint, the address now houses Panda Mart’s catalogue of more than 50,000 products ranging from kitchenware to gym equipment.

The recent Ulladulla listing comes to market within days of another former Bunnings site in Victoria selling prior to its October 24 auction date.

The site of Bunnings Horsham was snapped up ahead of its scheduled auction this month. Picture: realcommercial.com.au/sold

Jones Real Estate and Stonebridge Property Group put 24-38 Wilson St, Horsham, up for sale last month. The 9,592 sqm property was offered with an existing five-year Bunnings lease in tact – with three further five-year options – potentially extending the tenancy through to 2045. It’s annual earning capacity was in the vicinity of $680,000.

A seemingly bullet-proof purchase, a Bunnings site provides potential investors with the security of a multimillion dollar tenant that is one of Australia’s largest and most secure retail conglomerates.