This article is from the Australian Property Journal archive
Bunnings Warehouse Property Trust has bought a Bunnings Warehouse property at North Belmont in New South Wales from Patrick Street No. 1 Pty Ltd for $10.85 million.
The 4.0 hectare property is on the east side of the Pacific Highway in a service commercial locality of North Belmont, approximately 16 kilometres south of the Newcastle CBD.
The 8000 Series Bunnings Warehouse, developed by Austexx Developments Pty Ltd in 2001, is subject to a 15 year lease with Bunnings Group Limited that commenced in March 2001 with two options for a further five years each.
The rental is reviewed annually to CPI and subject to a market review every five years commencing in March 2016.
The passing annual rent of $753,783 represents an initial yield of 6.95%, which is expected to increase to approximately 7.2% following an annual CPI review on March 2007.
The passing rental is considered to be below market in comparison to comparable Bunnings Warehouses.
By Kathryn O’Meara
