Newmark has spent $75 million on its sixth Bunnings for its Hardware Trust.
The Eastgardens complex, south of Sydney, was offloaded by New Zealand’s Cook Property Group, led by Ben Cook, which paid the Wesfarmers retailer $56m in 2015 – prior to it being completed.
At that time, the yield was 5.15 per cent.
The latest deal puts the initial return at 4.14pc.
On 2.3 hectares, the Eastgardens store at 140-148 Denison Street, Hillsdale, contains 14,920 sqm of lettable area.
Colliers’ James Wilson was the agent.
Newmark Hardware Trust
Newmark has spent $299.5m on fund assets; it also holds stores at Maroochydore (Queensland), Launceston (Tasmania) and elsewhere in New South Wales, at Lake Haven (story continues below).
In 2019, the manager paid Invesco $51m for a Bunnings-backed retail investment at Warragul, about 100 kilometres east of Melbourne (Kmart, Officeworks and JB Hi Fi are also occupiers).
Two months ago it outlaid $85m on an outlet under construction in Preston, a suburb north of the Victorian capital.
The trust’s Weighted Average Lease Expiry is more than seven years.
All up, the properties cover 20.1ha and contain 115,913 sqm of area.
The Eastgardens store has traded since 2017.
“These are quality additions to the trust, providing long-term benefits to investors,” Newmark general manager, Funds Management, Stuart Fox said.
“It demonstrates our commitment to the Large Format Retail sector and our ability to secure quality assets in a competitive market while applying our disciplined approach to asset selection,” the executive added.
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