Regional Bunnings Warehouse sold for 3.9% yield17 November 2021
A new Bunnings Warehouse in Hervey Bay has been sold for $58.6m to New Zealand’s Cook Property Group.
Construction of the new 17,421 sqm Bunnings Warehouse on a prime site in Pialba, Hervey Bay’s town centre commenced earlier this year with completion due in Q4 2022.
The property offered a 10-year net lease with options extending until 2080 and the sale price reflects a yield of 3.9%.
“The campaign demonstrated a significant weight of interstate and overseas investors targeting long-leased secure returns underpinned by high quality tenants,” Mr Tyson said.
Peter Tyson observed, “We are experiencing ongoing and increasing investor appetite for high quality long-leased assets which continues to drive yield compression. ”
“It was apparent that Hervey Bay is seen as a very desirable investment location, with strong forecast population growth to fuel long term sales growth for Bunnings” added Stonebridge Partner, Justin Dowers.
Cook Property Group manage a number of Countdown and Bunnings stores in New Zealand and previously held the Bunnings Eastgarden which was sold earlier this year, to Newmark Capital for $75 million on a 4.14% yield.
Last week, Newmark completed a $129 million raising for a portfolio of eight large format retail assets, leased mostly to Bunnings, ahead of a pre-Christmas float.