Bunnings has leased new headquarters – being the bulk of a recently completed A-grade office at the Botanicca Corporate Park, near the Yarra River, in Melbourne’s inner east Burnley.
The hardware group will consolidate from six metropolitan locations, including a purpose-built National Support Centre at 16-18 Cato Street, Hawthorn East, which it moved to in 2004 after 36 years in Bourke St.
The lease on that 5295 square metre building is due to expire in 2022.
The Wesfarmers entity has committed to 13,886 sqm at Growthpoint’s Botanicca 3 at 570 Swan St, an address which also goes by Richmond.
Its agreement covers 71 per cent of the lettable commercial area.
It kicks in now and runs for 10 years and seven months; while rents haven’t been disclosed this kind of area is known to achieve upwards of $450 per sqm, pa, after incentives.
Bunnings also becomes one of Growthpoint’s top 10 largest tenants measured by income.
Other occupiers within the picturesque business park at the eastern edge of the suburb, abutting Hawthorn, include South Africa’s Woolworths Holdings Limited’s David Jones which left Sydney, and Country Road which quit Cremorne, for the 16,000 sqm Botanicca 2 office in 2018, and Forever New, which was in Kew East (story continues below).
Deal extends our WALE: Growthpoint
Growthpoint managing director Timothy Collyer said the Bunnings agreement will extend its pro-forma portfolio’s Weighted Average Lease Expiry (WALE) to 6.5 years.
“Growthpoint’s portfolio occupancy will also increase to 96 per cent,” he added.
“We are pleased to have agreed a long lease with Bunnings at Botanicca 3, particularly during these uncertain times, highlighting our ability to achieve leasing success in a challenging environment.
“We are very proud of Botanicca 3 and securing a pre-eminent tenant is a significant milestone for the development and confirms our view that Botanicca 3 is one of the highest-quality metropolitan offices in Australia”.
Colliers International’s Kevin Tutty and Rob Joyes with JLL’s Joshua Tebb and Shane Keogh were marketing the property for Growthpoint; following this deal, the agents have 5300 sqm within the building to fill.
The former’s Tim Farley and Mitch Bolger represented Bunnings.