Hoppers Crossing bulky goods centre fetches $100m
A Bunnings outlet and Amart store built a decade ago on the site of a Telstra Operations Centre, at Hoppers Crossing, has sold for nearly $100 million.
The result for the 5.54 hectare Industrial 3 zoned property, 221-239 Old Geelong Road, would reflect a 4.72 per cent net passing yield.
Sydney based businessmen Jacky Cheung and Guirong Zhang, via a company, ESCB Holdings Pty Ltd, are the buyers.
The vendor is a company linked with Gesualdo (Gerry) Costa, who owns the Costa Mitre 10 business, which once operated from three outlets.
Telstra occupied a portion of the property before in 1999 relocating functions, and that of more than 120 other operations centres, to Clayton.
Worth more than shopping centres
The Hoppers Crossing deal comes five months since a 1.67ha Bunnings backed investment at Swan Hill, near the New South Wales border, traded for more than $18m reflecting a four pc yield.
The hardware store itself also recently offloaded a couple of outlets with leasebacks including a 10,999 square metre South Kempsey, New South Wales, property, to a Lowe Group managed syndicate, for $28.55m – a 4.25pc return.
Another $58.6m was collected for a warehouse spreading 17,421 sqm in Queensland’s Hervey Bay which sold prior to completion.
That deal, with Cook Property Group, again reflected a four pc yield (story continues below).
Stonebridge’s Justin Dowers and Phillip Gartland with Savills’ Peter Tyson were the agents.
221-239 Old Geelong Road
About 25 kilometres south west of the city, 221-239 Old Geelong Rd, marketed by Burgess Rawson’s Billy Holderhead, Beau Coulter, Yosh Mendis and Zomart He, is at the centre of what is considered one of the city’s most established large format retail hubs.
The asset includes a 21,670 sqm Bunnings – a relatively big store in the network – which contributes to 74pc of the income (about $78.7m of the Hoppers Crossing sale value is attributed to this component).
Amart rents a 4809 sqm standalone outlet.
Around them are 568 car parks.
The asset’s Weighted Average Lease Expiry is seven years.
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