Bunnings are Back – Charter Hall Sells Clyde North Bunnings for $44 Million in Benchmark Off-Market Deal

Largest Bunnings transaction since 2022 reflects -4.9% yield and escalating buyer demand for Bunnings retail assets.

Charter Hall has achieved a strong yield benchmark for an expansive 17,005 sqm freestanding Bunnings in Clyde North, off-market for $44 million, marking the largest Bunnings Warehouse transaction in Australia since 2022. The deal, managed exclusively by Colliers National Director of Retail Middle Markets Tim McIntosh, reflects a 4.9% yield and underscores the enduring strength of the Bunnings covenant and reinforces depth of buyer demand for core retail investments in strategic metropolitan Melbourne locations.

The 17,005sqm* Bunnings Warehouse, situated on a substantial 37,780sqm* landholding is prominently positioned on Berwick-Cranbourne Road and within one of Australia’s fastest growing growth areas – Clyde North. The Bunnings was sold with a 12-year net lease with options until 2079. The asset generates a net income of approximately $2.17 million per annum* and features four street frontages and 372 on-title car spaces.

Tim McIntosh, National Director at Colliers, said, “The sale represents the largest Bunnings warehouse transaction nationally in the last three years. The strong level of competitive off-market interest reinforces the current depth of buyer demand for premium retail investments, particularly those underpinned by blue-chip tenants like Bunnings.”

The asset is located in Clyde North, one of Melbourne’s fastest-growing suburbs where the population is forcasted to grow 45% to 530,960 by 2036. The area continues to attract families and businesses, supported by large-scale residential development, infrastructure investment, and employment opportunities.

The property was acquired by a private Melbourne high-net-worth family who recognised the long-term value of the asset, its strategic location within a major growth area, and its alignment with Wesfarmers’ strong retail fundamentals.

Mr McIntosh concluded, “This transaction not only sets a new benchmark for Bunnings assets nationally but also signals renewed investor appetite for quality retail properties in Melbourne’s growth corridors and reaffirms Bunnings’ position as one of the most sought-after retail investments in the country.”