David Di Pilla’s HMC makes Bunnings sale at sizzling yield

HMC Capital managing director David Di Pilla. Picture: Jane Dempster

HMC Capital’s HomeCo Daily Needs REIT has sold the Bunnings Warehouse Seven Hills for $64.71m in the largest such sale of the specialist outlets in three years.

The sale to private property finance and investment group Mosman Capital was also the first Sydney metropolitan Bunnings transaction in four years and notable for its crisp 4.72 per cent yield.

The property was picked up by a group of wealthy investors led by Mosman Capital, which is headed by Raymond Huang and Andrew Balzan. The deal underscores the pent-up demand for metropolitan Bunnings assets.

The HMC fund picked up the Bunnings Warehouse for $56m in late 2020 from a trust associated with the Canberra Raiders on a passing yield of 5.1 per cent. It is on a 22,300sq m site 30km northwest of the Sydney CBD. The complex spans 13,440 sq m and has a weighted average lease of about six years.

Colliers head of retail middle markets, Australia, James Wilson, noted the scale of the transaction. “Bunnings Seven Hills is a landmark transaction for the sector, achieving the sharpest yield nationally for a single-asset Bunnings Warehouse in the past three years. The scarcity of metropolitan stock and the strength of the Bunnings covenant continue to drive intense competition among domestic and offshore capital,” he said.

The complex sports a secure, long-term cash flow underpinned by one of Australia’s most trusted retail brands.

The asset transacted at a capital value of $4815 per sq m, reinforcing investor confidence in the Bunnings covenant and the broader daily needs retail sector.

“Metropolitan Bunnings ­assets are tightly held and rarely traded. The last on-market Sydney metropolitan Bunnings sale was nearly a decade ago, highlighting the depth of demand and the defensive nature of this asset class,” Ben Wilkinson, Colliers manager, NSW retail middle markets, said.

In 2025, 13 Bunnings Warehouse transactions have been recorded nationally, totalling $510m, with sales running at more than double the 10-year annual average of $250m. The surge in activity reflects a broader reweighting toward defensive retail assets with strong fundamentals. The successful sale shows that investors remain confident in the Australian retail market.

Colliers said that retail had been a standout asset class in 2025, supported by resilient household spending, constrained retail floorspace and population growth, with year-todate transaction activity and ­average sale prices materially higher than prior periods.