EG is spending $48.75 million on Rockdale’s Bunnings with plans for an industrial redevelopment if the occupier quits upon its 2023 lease expiry.
The property will be held by EG Australian Core Enhanced Fund (ACE) which launched last June targeting income producing assets with potential “to be value-added through active asset management”.
Its new holding at 383-387 West Botany Road is about a four kilometre drive south of Sydney Airport.
It is twice this distance in the same direction from Bunnings Alexandria – which Charter Hall’s managed Core Logistics Partnership acquired a fortnight ago for $70m also with the intention of repurposing the land into an industrial investment once the lease expires.
Four of a kind for EG, which quietly ups ACE’s target end-value to $1bn
EG ACE launched with a $500m commitment and targeting a portfolio which would be worth $800m.
Instead it said this week, there’s $800m up its sleeve on top of the $202m it has outlaid.
Including 383-387 West Botany Rd – acquired on a 5.4 per cent passing yield – the trust holds four properties.
Its first wasn’t far from its latest: 230 Captain Cook Drive, Kurnell, cost $36m and includes a two storey office and 15,955 sqm warehouse acquired with a two year leaseback to Dicker Data (story continues below).
Late last year it picked up its most valuable asset: a 12-storey office at 2 Mill St in the Perth CBD, for $79.05m.
Busy time for Bunnings deals
Last month, Charter Hall managed Long WALE Hardware Partnership spent $353m on six Australian investments leased to the occupier (with plans to outlay c$50m on another, in Auckland).
The Wesfarmers backed retailer has been active in Melbourne planning and leasing circles too, recently – behind a proposal for multi-level store in inner north Brunswick and pre-committing to a landmark 16,500 sqm outlet in Tarneit.
In October Bunnings announced it would consolidate from several suburban offices in that city to a new headquarters, recently completed by Growthpoint at 570 Swan St, in the Richmond pocket of Burnley.