Former Bunnings Palmerston sold, set for retrofit

The former Bunnings Palmerston will become an industrial investment.

Another ex-Bunnings has sold to a developer intending to retrofit it as an industrial estate.

Two Palmerston Circuit, Palmerston, 20 kilometres east of Darwin, is trading for $7.5 million.

The incoming owner – a Northern Territory builder – is already seeking one or more occupiers for the 8379 square metre space.

The island site spreads 1.95 hectares and has 197 car parks.

Bunnings’ lease expires in June, based on its net rent ($982,721) the property is trading on a 13.1 per cent yield.

NTC Property director Nigel Sharp represented the vendor which constructed the warehouse for the occupier 15 years ago.

The hardware store recently relocated to a 17,170 sqm outlet at nearby Yarrawonga which parent Wesfarmers last February sold to Charter Hall for $41.3m (story continues below).

Ex-Bunnings’ and industrial parks

Early last month, the former Bunnings Alexandria in Sydney’s inner south sold for $70m, again to Charter Hall, which intends to retrofit the warehouse as a business park.

The property occupies 1.9ha, with three street frontages, c2.5km from Sydney Airport.

Not long after EG outlaid $48.75m on the Rockdale outlet which is leased to hardware store, but potentially only until 2023.

That asset, not far from Alexandria, has been earmarked for an industrial repurpose should the tenant not renew.

The 6500 square metre Palmerston site.

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Marc Pallisco

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

Marc Pallisco