Growthpoint Properties has confirmed that it has secured Bunnings as a key tenant for approximately 71% of the Botanicca 3 building at 570 Swan Street, Richmond, Victoria.
Bunnings has signed a lease for 10 years and seven months, commencing 1 October 2020, across 13,886 sqm. The agreed rent and incentive are in line with the market. The lease will enable Bunnings to consolidate its Victorian and National Store Support teams currently accommodated across six Melbourne offices into the one location.
Upon commencement of the lease, Bunnings will become one of the Group’s top 10 largest tenants by income. The new lease will extend Growthpoint’s pro-forma portfolio weighted average lease expiry (WALE) to 6.5 years as at 30 June 2020. Growthpoint’s portfolio occupancy will also increase to 96%.
Timothy Collyer, Managing Director of Growthpoint, said, “We are pleased to have agreed a long lease with Bunnings at Botanicca 3, particularly during these uncertain times, highlighting our ability to achieve leasing success in a challenging environment.
“We are very proud of Botanicca 3 and securing a pre-eminent tenant is a significant milestone for the development and confirms our view that Botanicca 3 is one of the highest-quality metropolitan offices in Australia. We are confident that Bunnings will enjoy their new office and we look forward to welcoming additional tenants in the near future.”
Growthpoint continues to expect to lease the remaining space at Botanicca 3 by the end of 2021. While this lease will positively impact Growthpoint’s FY21 funds from operations (FFO), Growthpoint has decided to maintain a conservative approach and reaffirms its distribution guidance of 20.0 cents per security.
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