Canberra Raiders score $56m for Bunnings Seven Hills

A Canberra Raiders trust has sold Bunnings Seven Hills for $56m.

HomeCo is paying $56 million to a trust set up by Canberra Raiders’ parent for Bunnings Seven Hills.

The 2.23 hectare property on the south west corner of Abbott and Old Windsor roads is being acquired on a 5.1 per cent yield.

Settlement is subject to the hardware giant rejecting its pre-emptive right to buy it from the vendor on terms agreed with HomeCo Daily Needs REIT (HDN) – which will otherwise hold it.

The investment is a block from the M2/M7 intersection, 30 kilometres north west of Sydney.

Bunnings has traded there since it was built just over a decade ago.

HDN floated last month.

Elsewhere in Sydney’s west, the fund owns assets in Glenmore Park, Gregory Hills, Penrith and Prestons (story continues below).

Raiders give up jewel in the crown

Bunnings Seven Hills. Image (and above): Google Street View.

The Canberra Raiders Rugby League Football Club Ltd has held Bunnings Seven Hills since early 2012, when it was said to be “the jewel in the crown” of the Canberra Raiders Trust, which at the time controlled a commercial property portfolio worth c$33m.

Also this week in Sydney EG paid $48.75m for Bunnings Rockdale with plans to repurpose the holding into an industrial investment if the occupier doesn’t renew in 3.6 years.

A fortnight ago Charter Hall managed Core Logistics Partnership spent $70m on the Alexandria store rented to the occupier for four more years with a similar redevelopment proposal.

That group’s managed Long WALE Hardware Partnership outlaid $353m last month for six Bunnings investments – five on the east coast.

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Marc Pallisco

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

Marc Pallisco