Queensland Bunnings goes big with $10m sale

A new Bunnings Warehouse store at Dalby in Queensland.
A new Bunnings Warehouse store at Dalby in Queensland.

Regional Queensland has peeled off one of the year’s first sales of a Bunnings Warehouse, with a store east of Brisbane selling for more than $10 million.

The almost brand new Bunnings-leased property at Dalby, about 200km west of the Queensland capital, traded for $10.6 million on a sharp 5.78% yield.

Built by local developer Argyle Investments and completed late last year, the store was sold to Toowoomba-based Killea Investments.

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Selling agent Markus Eames, from LJ Hooker Commercial, says the property ticked multiple boxes for Killea Investments director Phillip Collins.

“Mr Collins was attracted to the asset due to the fantastic tenant covenant, long-term lease and brand new building, which allows for great depreciation,” Eames says.

Wesfarmers-owned Bunnings has a 10-year lease on the property, and Eames says there is also additional land to provide for a potential expansion in the future.

Bunnings-leased properties continued to dominate commercial investor interest last year, with a string of major transactions across Australia.

In the largest deal, investment group CBRE Global Investors paid $180 million in November for four of the stores, most of which were still in the development phase.

And the home hardware giant also revealed plans to expand across the United Kingdom, having bought the Homebase brand and announcing it hoped to transform 20 former Homesbase stores into Bunnings outlets by the end of 2017.