Bunnings banks $22.5m for near new store
Bunnings Group has quietly sold a near new outlet with a 10 year leaseback.
The $22.5 million deal for 140 McKenzie Street, Wonthaggi, was sealed in August.
The store only opened 11 months earlier; based on the rent the hardware retailer was paying, the result reflects a five per cent yield, the agents said.
It is the first Victorian outlet sold with a leaseback on behalf of Bunnings Group since 2019.
The other, a then four month old complex in the outer south east Melbourne suburb of Clyde North, traded to Charter Hall for $42.3m – a 4.5pc return.
Justin Dowers, now with Stonebridge, brokered that deal.
Leaseback deal
McKenzie Rd is also the Bass Highway, the main thoroughfare to town from Melbourne (story continues below).
The Wonthaggi block spreads 2.1 hectares, also facing White St and Keltie Avenue, with 220 car parks.
The store contains about 9000 square metres.
The rental agreement will see annual reviews to CPI but capped at 2.5pc.
“The sale of Bunnings Wonthaggi underscores the vitality of the retail investment market, especially in regional areas, and continues to demonstrate the confidence investors have in tenants like Bunnings,” Savills’ Rick Silberman, who brokered the deal with Stephen Bolton, said.
“As regional markets grow in prominence, assets like this one will remain highly sought after for their solid income streams and secure leasing arrangements,” he added.
Wonthaggi, is about 135 kilometres south east of Melbourne’s CBD, in the South Gippsland region.
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