Melbourne family lands Bunnings store for $7.8 million
A Melbourne family has landed the Bunnings Warehouse store at Colac in Victoria’s west for $7.8 million.
The property, leased to the home hardware giant, is only the third Bunnings store to sell across Victoria this year.
The store at 130-138 Bromfield St is leased to the Wesfarmers-owned chain for at least the next eight years, having moved onto the site only two years ago.
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The sale price reflected 6.09% yield, which is considered high for a Bunnings Warehouse, with many stores transacting on yields well below 5%. A Bunnings at Yarrawonga previously sold for almost $12 million on a 4.94% yield, while another at Osborne Park in Western Australia traded for just over $7 million on a 4.65% yield.
CBRE’s Mark Wizel, Kevin Tong, Joseph Du Rieu and Justin Dowers handled the expressions of interest campaign for the Colac store, which saw 115 enquiries and four formal offers, including some from overseas.
Wizel says that the store’s cheaper price put it in range for more investors, some potential buyers baulked at the store’s smaller footprint.
“Whilst the price point created a far higher level of accessibility for a wide range of investors, the smaller format store did present a hurdle for many investors as we have seen Bunnings continue to move toward large format sites in recent times,” Wizel says.
DBR Property’s David Ryan represented the buyer, and says the asset proved very attractive to them.
“This asset, much like several similar we have been involved with over the past 24 months, fits very comfortably within the portfolio of our private clients,” Ryan says.
