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.
Stonebridge’s Justin Dowers and Phillip Gartland and Savills’ Peter Tyson handled the marketing and sale which generated more than 200 buyer enquiries and 8 formal offers.
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.
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