Melbourne fund manager adds another Bunnings to book

Bunnings Young (outlined) opened in late 2020.

The Sydney investor who three years ago paid $11 million for the then new Bunnings Young, setting a record low 4.95 per cent yield for a non-metropolitan New South Wales warehouse tenanted to the group, has sold it for a loss.

This time around, 288 Boorowa Street fetched $10.5m – a speculated 5.5pc return.

Melbourne based MPG Funds Management is the buyer.

The asset will be slotted into the MPG BW Trust which holds other Bunnings backed investments, including in Port Macquarie and Rockhampton.

Also headed for that fund is a strata titled Aldi in West Melbourne which we reported in December cost the manager $14.4m – a 5.47pc yield.

“The acquisitions are in line with our strategy to acquire secure investments that fit our existing high-quality portfolio,” MPG managing director, Brett Gorman, said.

“We will continue to be selective however we are seeing good buying opportunity present itself…that provide attractive rental growth and long-term security to national branded and government tenants,” he added.

MPG, an arm of Camberwell based McMullin Group, formed in the late 1970s by late Spotless founder Ian McMullin, now manages assets worth $1.05 billion.

Young, considered Australia’s cherry picking capital, is about 375 kilometres south west of Sydney and 160km north west of Canberra (story continues below).

Bunnings Young contains 5530 square metres.

Bunnings Young

On 1.15 hectares, the Young asset – the only Bunnings within 70 kilometres – contains 5530 sqm and 88 car parks.

The Young store is the only Bunnings within 70 kilometres.

The hardware giant’s initial lease expires in 2030 but with options, it can stay until 2078.

As well as rent, the retailer pays insurance, land tax and rates.

Boorowa St, to which this property has 211 metres of frontage, is the precinct’s chief commercial precinct; a nearby new homemaker centre is occupied by, amongst others, Forty Winks and Pets Domain.

Big W, Harvey Norman and Woolworths also trade nearby.

JLL’s Stuart Taylor, David Mahood and Sebastian Fahey brokered the off-market deal.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of