This article is from the Australian Property Journal archive
THE Bunnings Warehouse Property Trust has snapped up a parcel of land adjoining its existing centre in Broadmeadows, 15km north west of the Melbourne CBD.
The vacant site of approximately 433 sqm was acquired in conjunction with the trust’s main tenant, Bunnings Group Limited for $300,000 (excluding acquisition costs).
The trust said this parcel of land, combined with another small adjoining parcel acquired in 2004, enables the expansion of the adjoining Bunnings Warehouse.
BGL will pay the trust an access fee of 8% per annum on the total capital outlay for the new land until the expansion of the adjoining Bunnings Warehouse has been completed.
On completion the trust will receive an 8% return on the development cost, estimated to be $5.4 million, and the parties will enter into a new 10 year lease of the Bunnings Warehouse with a 10 year option.
Australian Property Journal
