logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Australia
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Investment Management)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Agribusiness
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Government Real Estate Advisory & Transactions
      • Hotels
      • Industrial & Logistics
      • Office
      • Residential
      • Retail
      • Retirement & Healthcare
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt and Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Accounting & Reporting Solutions
      • Structured Transactions & Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Property Sales
      • Recovery & Restructuring
      • Valuation & Advisory
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Sale and Leaseback
      • Structured Transactions & Advisory
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Agribusiness
      Hotels
      Industrial & Logistics
      Institutional Investments
      Metropolitan Investments
      Office
      Residential
      Retail
  • Research & Insight
    • Australia Research
      Asia Pacific Research
      Global Research
      Expert Opinions
      Talking Property Podcast
  • People & Offices
    • Pacific Executive Committee
  • About CBRE
    • [email protected] - LGBTQI+ Inclusion
      Careers
      Case Studies
      Client Tools
      Corporate Information
      Environmental, Social and Governance
      Investor Relations
      Media Centre
      Reconciliation
      The Place Makers

Previous

Press Release
Resort opportunity in one of Fiji’s most exclusive tourism regions

Next

Press Release
CBRE Group, Inc. reports robust revenue and earnings growth for the first quarter of 2014
  • Home
  • About CBRE
  • Media Centre
  • Sale of land and buildings at Bunnings Warehouse Hastings represents strongest yield since 2007

Sale of land and buildings at Bunnings Warehouse Hastings represents strongest yield since 2007

1 May 2014
  • Email
  • Share
  • Tweet
  • Share

Melbourne, 1 May 2014 – The land and buildings at Bunnings Warehouse Hastings in Victoria has sold for $15,160,000 reflecting the sharpest yield for this style of investment in since 2007.

Selling agents Mark Wizel and Justin Dowers of CBRE, in conjunction with Andrew Waddell of Gross Waddell, acted on behalf of Bunnings to complete the transaction with a Victorian-based private syndicator.

Mr Wizel, CBRE’s Victorian Retail Investments Director, said the 6.49% sale yield was the tightest achieved on the land and buildings at a Bunnings Warehouse in almost a decade - the result reflecting the strong appetite for well leased retail investments.

“Many passive investors continue to flock to this style of asset, with the current low cost and availability of debt, improved retailing conditions and a lack of suitable investment opportunities driving the market to highs not seen since 2007,” Mr Wizel said.

“We have seen yields really compress in the past 18 months, with the strength of the Bunnings tenancy covenant a real draw card for investors with long term investment strategies. We estimate that compression to be around 200 basis points.”

Andrew Marks, Bunnings General Manager Property, added; “We are seeing significant demand from across the whole spectrum of the property market for Bunnings assets. We see this driven by the ongoing strength of our business as well as the quality of our real estate. ”

The 9,000 square metre Hastings warehouse is located at Frankston Flinders Road, Hastings. It was leased back to Bunnings on a 12 year term.

“There are limited opportunities to secure new Bunnings asset, and when they do become available we are experiencing unprecedented demand, Mr Wizel said.

Mr Wizel linked the buyer interest to the strength of the Bunnings retail business and the structure of the leasebacks, which were typically 12 year terms with annual rental increases.

Site location was another draw card, with Bunnings recognised as a market leader in its site acquisition process.  These are all factors in the prices being achieved for Bunnings assets, Mr Wizel said.

For Australian/international news or global stories, follow us on Twitter.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.au.
 

 

 

 

 

Media Contacts

Kathryn House Headshot
Kathryn House
Communications Director
Pacific
+61 2 9333 3585
+61 402 465 440
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • Case Studies
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Australia Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Whistleblower Policy
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • Youtube