This article is from the Australian Property Journal archive
THE BWP Trust has bought a 2.85ha development site in Australind, Western Australia from Bunnings Group for $8.285 million plus acquisition costs of approximately $0.5 million.
Located at the corner of Ditchingham Place and Kingston Drive, in the subdivision of Treendale, 150km south of the Perth CBD, the property will be developed into a Bunnings Warehouse with a total retail area of 13,422 sqm and approximately 225 car parking spaces.
The commencing annual rental income of the property is $1.25 million, with Bunnings leasing the property on completion for an initial fixed term of 12 years and five further six-year options.
Under the lease the rent increases by a fixed 3% per annum. At the end of the initial term and the exercise of each option by Bunnings the rent is subject to a market rent review, having regard to the rents paid at comparable properties. The market rent reviews for the property are subject to a 10% ‘cap and collar’, meaning that the rent cannot rise or fall by more than 10% of the preceding year’s rent.
From settlement to when the development is completed, Bunnings will pay the Trust a 7.0% per annum access fee on the purchase price.
BWP managing director Michael Wedgwood said the acquisition increases the number of properties in the portfolio to 85, of which 79 are Bunnings Warehouses.
Australian Property Journal
