Interstate investor buys Bunnings pre-auction
A Perth investor has bought Horsham Bunnings following a pre-auction offer reflecting a six per cent passing yield.
The 9592 square metre site – five individually titled addresses, zoned Commercial 1 – traded for $11.4 million.
The hardware group is on a new lease expiring in October, 2030, but with options can stay until 2045.
The property was on the market 10 days.
Stonebridge Property Group’s Kevin Tong, Rorey James and Justin Dowers with Jones Real Estate’s Paul Jones and Tim Spargo were the agents.
The vendor, a Middle East based investor, paid $9.8m in 2021.
Bunnings Horsham
Known as 24-38 Wilson Street, the property also fronts Pynsent and Urquhart.
The warehouse spreads 6080 sqm.
There are also about 40 car parks.
The lease agreement includes fixed three per cent rent rises. Bunnings presently pays $685,387 per annum and picks up all expenses including land tax.
Horsham is home to 20,000 with over 2100 businesses, Mr Jones said.
“Key projects currently underway include the $370m SEC renewable energy park, the $425m Farm Frites potato processing facility, and the Western Highway intersection upgrade,” he added.
“These developments, combined with the city’s established strengths in health, retail, construction, and agriculture, are driving economic diversification and creating long-term employment opportunities,” according to the executive.
Also this year, Bunnings backed outlets at Clyde North sold (for $44m) and, in South Australia’s Mount Gambier sold ($27.98m) and Taree, New South Wales ($28.15m) – this one, to the City of Newcastle as an investment.
Region Group also shed a portfolio of six South Australian Bunnings outlets, in July.
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