Stonebridge Property Group is pleased to announce the sale of Bunnings Warehouse Bathurst for $25.5m to a Private Investor, reflecting a yield of 5.35%.
The regionally-located standalone asset is underpinned by a 12 year net lease of $1.365m to Bunnings Group, with options to 2077 and fixed annual rental increases of 2.5%. In October 2015, significant upgrades were completed taking the store’s Gross Lettable Area from 8,300sqm to its current size of 14,272sqm.
Commenting on the sale, Stonebridge Sales Agent, William Blanch said, “The reinvestment by Bunnings into the asset sent a clear signal to the market that this is the most dominant large-format retail precinct in Bathurst and the growth that the city has experienced in recent years is set to continue.”
“Looking at sales over the past two years, this sale represents a further benchmark for Bunnings assets across Australia.”
”The volume of interest throughout the campaign highlights the market’s continued demand for annuity-style real estate investments, and with a ‘blue-chip’ covenant like Bunnings combined with a total potential lease tenure of 60 years, this asset is exactly that.”