Investment group shells out $180m for four Bunnings
An investment group has paid $180 million for four Bunnings Warehouse stores across Australia and New Zealand, three of which were yet to sell a single item.
Such is the demand for properties leased to the hardware giant, CBRE Global Investors paid the huge sum to acquire the four sites while most were still in the development phase.
The stores were owned by Bunnings, with two of them situated in Sydney, one in Adelaide and one in Auckland.
Commercial Insights: Subscribe to receive the latest news and updates
According to advisory agents JLL, three of the sites were under construction as the deal was completed, while all were sold with 12-year leases back to Bunnings, with options potentially seeing the lease terms reach 60 years.
The stores’ combined footprints span 54,000sqm, while the blended yield of the properties was in the low-5% range.
JLL’s head of Asia Pacific Capital Markets, Stuart Crow, says the properties were sold with a view to establishing another major owner of Bunnings properties in Australia.
“We are pleased to have acted for Bunnings on this strategic mandate to introduce a new major international landlord of their prime retail warehouses across Australia and New Zealand, with both parties willing to grow the portfolio over time” Crow says.
CBRE Global Investors Director of Investment – Australia, Chris Johnston, says Bunnings continues to appeal to
“This portfolio provides exposure to a strong credit tenant who is a leading retailer in the home improvement market with quality assets and attractive lease terms,” he says.
We welcome the opportunity to work with Bunnings on any future acquisitions.”