Stonebridge Property Group and Savills are jointly appointed to market a brand-new Bunnings Warehouse for sale, at Hervey Bay in Queensland’s burgeoning Fraser Coast Region.
Construction has commenced on the new 17,421 sqm Bunnings Warehouse on a prime site in Pialba, Hervey Bay’s town centre and CBD, with completion of the new store due in Q4 2022.
Bunnings Hervey Bay is offered for sale with a new 10-year net lease to Bunnings Group Limited, with options extending until 2080.
Stonebridge’s Justin Dowers and Philip Gartland and Savills’ Peter Tyson are handling the marketing and sale.
“The market for Bunnings Warehouse investments has further improved over the last 12 months given the robust performance of the Bunnings business, regardless of lockdowns” said Justin Dowers
Peter Tyson observed, “We are experiencing ongoing and increasing investor appetite for high quality long-leased assets which continues to drive yield compression. The ASX-listed Wesfarmers subsidiary Bunnings Group is quite clearly one of the most highly sought-after lease covenants in today’s marketplace and the new Hervey Bay Bunnings store is expected to attract enormous interest and competition.”
The latest offer comes within weeks of Bunnings selling their proposed Kempsey South store to the Lowe Group for $28.55m. The deal represents a 4.2% yield and sets the expectation on pricing for Hervey Bay. The 10,999sqm Kempsey store is a smaller format Bunnings, reflecting a price of $,2597/sqm of NLA. On this basis, Hervey Bay could sell find support at over $40m.
“The demand for Bunnings Hervey Bay is likely to be significantly enhanced by the investor’s ability to acquire the land prior to practical completion, whereupon they will inherit a brand-new ” asset.” said Philip Gartland.
“The Bunnings asset class has proven to be very tightly held and thinly traded and given the attributes of this property, it will be a very compelling offering” he added.
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