Bunnings lists Hervey Bay store
Bunnings is offering another unbuilt outlet – this time in Hervey Bay.
The hardware chain can expect about $55 million for the Pialba property, sources say, which would reflect a yield of c4.2 per cent.
The 17,421 square metre complex, with 451 car parks, will be developed on a 4.72 hectare block at the north east corner of Main and McLiver streets, beside its existing store.
Stockland Hervey Bay is across the road.
Yesterday we reported Bunnings sold its South Kempsey outlet on a funds through basis to Melbourne syndicate The Lowe Group.
That deal, worth $28.55m, was struck at a 4.19pc net return.
Like the Pialba property, Bunnings offered it with an initial 10 year lease.
The next Bunnings Hervey Bay
Due for completion in late 2022, Bunnings Hervey Bay is being marketed by Stonebridge Property Group’s Justin Dowers and Philip Gartland with Savills’ Peter Tyson (story continues below).
The vendor will pay starting annual rent of $2.34m.
With options, it can stay until 2080.
“The market for Bunnings warehouse investments has further improved over the last 12 months given the robust performance of the…business, regardless of lockdowns,” Mr Dowers said.
“The Bunnings asset class has proven to be very tightly held and thinly traded and given the attributes of this property, it will be a very competitive offering,” Mr Gartland added.
In June, De Luca Corporation sold an outlet leased to the hardware group, at Brisbane’s outer west Plainland, for $22.2m – a price reflecting a 4.21pc yield.
Two years ago the same seller offloaded that city’s Lawnton store for $18.68m.
Hervey Bay is about 200 kilometres north of the Sunshine Coast.
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