A near new Bunnings outlet at Young – a 375 kilometres drive south west of Sydney – has sold for $11 million.
On 1.15 hectares at 288 Boorowa Street, the 5530 sqm complex was completed late last year.
Offered with a 10 year lease, it is the only Bunnings within 70 kilometres.
“The transaction further highlights market strength for high calibre assets, with offers received from local investors, in addition to offers from investors based in…ACT, Melbourne and Adelaide,” Mr Wilson said.
In the end, a Sydney investor won it.
“The 4.95pc passing yield…is the first sub 5pc yield announced publicly in non-metro NSW for a Bunnings warehouse investment” (story continues below).
In 2018, a new store occupied by the group at Katoomba – 100km west of Sydney – traded for $9.1m reflecting a 5.27pc yield.
Last November, Charter Hall managed Long WALE Hardware Partnership paid $353m for six east coast, metropolitan outlets including two in the NSW capital – at Bonnyrig and Carinbah.
A month later, Home Consortium spent $56m on a Seven Hills complex.
Young is considered Australia’s cherry picking capital.