Hervey Bay, 92 McLiver Street, Pialba
A brand new Bunnings Warehouse located in Queensland’s Hervey Bay has been sold to Cook Property, an offshore private investor, for $58.6 million on a record 4.00% yield amid strong investor demand for bullet-proof retail investments. The sale generated fierce bidding competition and sets a new national benchmark low yield for a large format Bunnings Warehouse.
The 17,421 sqm Bunnings Warehouse, currently under construction and due to be completed in Q4 2022, attracted significant interest Australia-wide and internationally with more than 200 buyer enquiries and 8 formal offers.
Bunnings Hervey Bay was sold with a new 10-year net lease to Bunnings Group Limited, with options extending until 2080.
The deal was jointly negotiated by Stonebridge’s Phil Gartland and Justin Dowers and Savills’ Peter Tyson.
Stonebridge Partner, Phil Gartland commented “The Bunnings covenant and asset genre continues to come to the fore for savvy investors, being one of the most sought after commercial real estate investments. This was certainly reflected in the depth of bidding across private investors, syndicates and institutional capital alike”.
Savill’s National Director, Peter Tyson noted, “The campaign demonstrated a significant weight of interstate and overseas capital targeting long-leased secure returns underpinned by high quality tenant covenants. The ASX-listed Wesfarmers subsidiary Bunnings Group is quite clearly one of the most highly sought-after lease covenants in today’s marketplace.”
“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.