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Bunnings Pays $25 Million For Doncaster Supersite

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Written by Marc Pallisco   
Tuesday, 06 September 2011 00:00

HARDWARE giant Bunnings is believed to have paid about $25 million for a collection of adjoining sites abutting a major entrance of Westfield Doncaster shopping centre, about 14 kilometres east of town.

The ASX listed company is planning to build a warehouse on the 1.1 hectare supersite though a permit request has not yet been lodged with council.

Bunning’s parcel includes a 5250 square metre former service station site at 659 – 667 Doncaster Road which was until recently earmarked to become a major apartment tower. It also acquired the site next door, a 7-Eleven convenience store, at 669 – 671 Doncaster Road at the north-west corner of Council Street.

Behind these two sites, Bunnings purchased 4376 square metres of land within two properties being an open-air car park at 4 – 6 Tower Street, and former house sites between 3 – 5 Council Street. These adjoining properties were marketed last year by Colliers International’s Peter Bremner and Shane Dargue, with Dawson Real Estate Doncaster’s Robert Dawson and Ben Dawson. The agents declined to comment when contacted by BusinessDay.

The easternmost boundary of Bunnings new site is opposite Doncaster Primary School and a community theatre.

Bunnings national manager – property development Andrew Marks said the proposed development is in the early planning stages. Sources speculate construction could start construction within a couple of years.

Mr Marks says the proposed development forms part of the company’s strategy to invest and expand in metropolitan and regional Victoria. Bunning’s new Woolworths-led rival Masters opened its first warehouse in Melbourne’s west this week. Masters is aiming for a 100 stores nationally within five years.

Source speculate Bunning’s Doncaster superstore will be multi-level, like its Hawthorn store at 230 Burwood Road, and include a large underground car park.

A planning strategy known as Doncaster Hill affecting parts of Doncaster Road near the shopping centre aims to build high density housing and commercial developments along the elevated stretch of road, which offers postcard views over Melbourne’s eastern suburbs toward the CBD.