This article is from the Australian Property Journal archive
BUNNINGS Warehouse Property Trust has bought an established Bunnings Warehouse in Villawood, Sydney for $18.4 million.
The acquisition represents an initial yield of 7.24%.
The 2.6 hectare property, acquired from Perpetual Trustee Company Limited, is situated at the corner of Woodville Road and Tangerine Street, approximately 26kms west of the Sydney CBD and includes an 8,310 sqm Bunnings Warehouse.
Bunnings Group has signed a new 10 year lease with the trust at a commencement rent of $1.33 million per annum, with five subsequent renewal options of five years each.
The rent rises annually by 3% and is subject to a market review at the renewal of each option term. At market review, the rent may be no greater than 110% nor less than 90% of the rent in the preceding year.
The acquisition is the trust’s fifth Bunnings Warehouse in the Sydney metropolitan area and increases the total number of Bunnings Warehouses to 51 and the total number of properties in the portfolio to 60.
Australian Property Journal
