Bunnings has sold an unbuilt Hervey Bay store to New Zealand’s Cook Property Group.
The $58.6 million price for the Pialba asset at the north east corner of Main and McLiver streets (artist’s impression, top) reflects a 3.99 per cent yield.
The hardware chain offered it with an initial 10 year leaseback; with options it can stay until 2080.
On 4.72 hectares, with 17,421 square metres and 451 car parks, the outlet is due to open late next year.
Stonebridge’s Justin Dowers and Philip Gartland with Savills’ Peter Tyson brokered the sale, believed to reflect the second lowest yield for a Bunnings investment (three years ago a Glenorchy, Tasmania, store traded for $14.06m at a 3.13pc return).
“The campaign demonstrated a significant weight of interstate and overseas investors targeting long-leased secure returns underpinned by high quality tenants,” Mr Tyson said.
“Bunnings is quite clearly one of the most highly sought-after lease covenants in today’s marketplace,” he added.
In February, Cook Property Group banked $41.435m selling Parramatta’s Entrada Shopping Centre (story continues below).
Bunnings sells down Hervey Bay sites
Bunnings general development of Business Development, Garry James, said the Hervey Bay warehouse “is ideally situated to support the growing area of Hervey Bay and we are pleased to have completed a successful sale at a yield that is reflective of the market on lease terms that take into account our operational objectives”.
The company intends to repurpose its existing, neighbouring Hervey Bay outlet, on the south west corner of Boat Harbour Drive and Main St, as a homemaker centre.
Last month we reported the retailer sold a three hectare property opposite there – 200 Boat Harbour Dve, acquired 11 years ago keep then-rival Masters out – to Spotlight Retail Group which is proposing a bulky goods asset.
In September the hardware group offloaded an unbuilt South Kempsey outlet for $28.55m – a 4.19 per cent return – to Melbourne syndicate Lowe Group.
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