This article is from the Australian Property Journal archive
BUNNINGS Warehouse Property Trust has bought a development site in Melbourne's inner eastern suburb of Hawthorn for $19.4 million.
The 0.84 hectare site is located at 230 Burwood Road, a major arterial road from Melbourne’s eastern suburbs to the Melbourne CBD.
The property was owned by Yankel No. 17 Pty Ltd.
A Bunnings Warehouse is to be developed on the site, with completion due by the middle of 2009 at a cost to the trust of $24 million. Under the terms of the development agreement, the developer, Becon Constructions will be responsible for outgoings and pay the trust land rent to cover holding costs until the Bunnings Warehouse is completed.
The Bunnings Warehouse will have a total retail area of 7,462 sqm and 299 car bays in a new multi-level format. The completed development is to be leased to Bunnings Group Limited under a 12 year lease term with four five-year options exercisable by the tenant.
Commencing net rent of $2,710,000 per annum is reviewed to market in year six and at every option. The commencing rent represents a 6.25% yield on the total purchase price of $43.4 million.
The Hawthorn property will take the trust’s total number of properties to 57, including 50 Bunnings Warehouses, two Bunnings Warehouse distribution centres, two development sites on which Bunnings Warehouses are to be developed and the three Blackwoods properties.
Australian Property Journal
