Bunnings trades four month old Clyde North outlet for $42.3m

EXCLUSIVE

Bunnings has found a buyer for a four month old outlet in Melbourne’s outer south east.

The hardware retailer offered the Clyde North facility at 46S Hamersley Drive last October as a sale and leaseback arrangement.

With four street frontages, including to busy Berwick-Cranbourne Road, it carried price hopes of over $35 million. It is selling for $42.3m, a price which reflects a 4.5 per cent yield.

The investment was the first metropolitan Melbourne Bunnings store to hit the market since 2015, CBRE selling agents Justin Dowers, Mark Wizel and Lewis Tong, said upon listing.

Bunnings Clyde North

Bunnings acquired the 3.8 hectare site which made way for the Clyde North store from MAB Corporation in late 2017.

The 16,634 square metre hardware outlet, at the entrance of MAB Corporation’s 38 hectare Element Park business park, only opened last September (story continues below).

The vendor offered it with a new 12 year lease paying starting annual rent of $1.904m.

The holding includes 372 car parks.

MAB has recently completed major roadworks around to the site.

At present, about 11,000 vehicles pass Bunnings Clyde North.

By 2041, the agents said, relying on VicRoads data, that number will rise to about 25,000.

About 47 kilometres south east of the CBD, the suburb sits within the Casey municipality – the third fastest growing in Victoria and eighth nationally.

Last June, local developer Goldfields Group paid $110m for a 71ha Clyde North farm, earmarked for a 1000 lot-plus housing estate.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco