This article is from the Australian Property Journal archive
A purpose-built Bunnings store in Wonthaggi has changed hands on a 5.0% yield.
An undisclosed buyer acquired the asset at 140 McKenzie Street in an off-market deal managed by Savills’ Rick Silberman and Steve Bolton.
The 9,000 sq m warehouse has a 10-year lease. The 2.1-hectare site includes an outdoor nursery, timber sales area, on-site café, and 220 on-grade car parks.
Wonthaggi is 135 km south-east of Melbourne’s CBD in coastal South Gippsland.
The deal follows Bunnings Group’s sale of its Clyde North store in 2019.
“This transaction reinforces the ongoing demand for long-term, secure investment opportunities, especially those tied to iconic Australian brands like Bunnings. It highlights the appeal of properties underpinned by robust lease agreements, regardless of location,” said Bolton, director of retail investments at Savills Australia and New Zealand
Bunnings’ Wonthaggi store opened in July 2023, which costed around $30m.
Currently, the company has 282 large warehouse stores, 67 smaller format stores, and 32 trade centres and frame & truss sites. It also owns South Australian retailer Adelaide Tools (now Tool Kit Depot), with 11 stores, and Beaumont Tiles with 115 stores.
