Sharpest yield for a Bunnings Warehouse transaction in 3 years
Colliers Retail Middle Markets, on behalf of HMC Capital’s HomeCo Daily Needs REIT (HDN) is proud to announce the off-market sale of Bunnings Warehouse Seven Hills for $64.71 million for a benchmark yield of 4.725%.
The sale was negotiated in an off market EOI by Colliers Retail Middle Markets team consisting of James Wilson and Ben Wilkinson.
This transaction marks the largest single-asset Bunnings Warehouse sale nationally since 2022 and the first single-asset Sydney metropolitan Bunnings transaction in four years. It also represents the sharpest Bunnings Warehouse yield reported since 2022. The sale to a group of high net worth private investors underscores pent-up demand for metropolitan Bunnings assets with no publicly marketed Sydney campaigns since 2015.
James Wilson, Head of Retail Middle Markets, Australia | Retail Capital & Middle Markets, said, “Bunnings Seven Hills is a landmark transaction for the sector, achieving the sharpest yield nationally for a single-asset Bunnings Warehouse in the past three years. The scarcity of metropolitan stock and the strength of the Bunnings covenant continue to drive intense competition among domestic and offshore capital.”
Located in Western Sydney, Bunnings Seven Hills offers secure, long-term cash flow underpinned by one of Australia’s most trusted retail brands. The asset transacted at a capital value of $4,815/m², reinforcing investor confidence in the Bunnings covenant and the broader daily needs retail sector.
“Metropolitan Bunnings assets are tightly held and rarely traded. The last on-market Sydney metropolitan Bunnings sale was nearly a decade ago, highlighting the depth of demand and the defensive nature of this asset class,” added James Wilson, Head of Retail Middle Markets, Australia | Retail Capital & Middle Markets
Year to date, 13 Bunnings Warehouse transactions have been recorded nationally in 2025, totalling $510 million more than double the 10-year annual average of $250 million. This surge in activity reflects a broader reweighting toward defensive retail assets with strong fundamentals.
The successful sale of Bunnings Seven Hills demonstrates continued investor confidence in the Australian retail market and the enduring appeal of high-performing, convenience-led assets.
According to Colliers’ Q3 snapshot, retail has been a standout asset class in 2025, supported by resilient household spending, constrained retail floorspace and population growth, with year to date transaction activity and average sale prices materially higher than prior periods – a trend we expect to continue.
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