The largest NSW Non-Metro freestanding Bunnings Warehouse was quietly sold back in May 2021 for $40.5m, reflecting a yield of 4.91%.
The 3.9ha site at 1 Lockheed St Taminda, near Tamworth was sold by Colliers on behalf of a private investment group in an off market process with contracts exchange in late April 2021.
The transaction highlights the depth of the market for strategically located investments under pinned by quality tenant covenants on long term leases.
Whilst the Bunnings tenancy has a lease expiring in 2024, there is a high likelihood of Bunnings renewing the lease given the age of the suitability of the site.
At least 5 other Bunnings stores have changed hands in the last 4 months with sales in Hillsdale, Young, Plainland, Baldivis and Horsham all taking place since April on an average cap rate of 4.8%.
The Newmark REIT’s acquisition of 140 Denison Street Hillsdale (Eastgardens) for $75m was the largest deal and also on the sharpest cap rate of 4.1%. Newmark have been slowly acquiring assets for the Newmark Hardware Trust which it had considered for listing on the ASX. The Trust currently holds 6 assets worth $320m including 1 development site which is due for completion in mid 2022.
More recently, the Charter Hall Long WALE REIT acquired the Baldivis Bunnings store at 1400 Safety Bay Rd in WA. The $49m acquisition reflected a passing yield of 5.1%.
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