Region offloads SA Bunnings
Region Group – until late 2022 known as SCA Property Group – is the latest institution to shed a fully-leased Bunnings.
The eight year old Mount Gambier store, 204-210 Penola Road, abutting the Woolworths Mount Gambier Marketplace, collected $27.98 million – a five per cent yield – from a local private investor following an off-market campaign.
On 2.06 hectares it contains just over 10,000 square metres with a drive through timberyard, DIY workshop and cafe.
The site also contains a nursery.
The hardware giant replaced defunct Masters at the address.
Bunnings’ former local store meanwhile was in 2023 filled by Metcash brands, Mitre 10 and Total Tools.
Bunnings Mount Gambier
The sale comes a week since we reported the City of Newcastle bought a Bunnings at Taree – the deal again reflecting a five per cent yield.
That seller, Charter Hall, also recently sold a Clyde North, Melbourne, outlet leased to the hardware giant, to the Schiavello family.
Bunnings meanwhile in March divested a near new Wonthaggi outlet, again in Victoria, with a leaseback.
Coincidentally, both these deals also reflected five per cent returns.
“The sale of Bunnings Mount Gambier confirms that regional Bunnings properties can achieve yields comparable to metropolitan assets and aligns with other recent transactions,” JLL’s Sebastian Fahey, who represented Region with David Mahood, Nick Willis, Sam Hatcher and Ben Parkinson, said.
“With interest rates expected to continue their downward trend through 2025, investor demand for defensive retail investments with secure income profiles remain strong despite limited supply as owners recognise the value of these ‘fortress style’ assets,” he added.
Earlier this year, Region Group offloaded a Woolworths backed supermarket, in Sydney’s Greystanes, to Revelop.
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