Mr Dowers said the property provided an attractive opportunity to enter the Bunnings Warehouse investment market at a sub $10m price point.
“Bunnings Warehouse assets have been a highly sought after investment vehicle over the past two or so years - and given the fixed rental growth of 2.75% per annum and the secure lease in place, we anticipate this property to be well received,” Mr Dowers said.
“The continued lack of retail investment opportunities, particularly in strong Victorian locations, has led to investors competing for regional assets – as was evidenced by Bunnings Yarrawonga at the back end of 2016, which sold on a sub 5% yield.”
Mr Du Rieu commented on the opportunity: “The modern building at Colac will provide significant depreciation benefits to investors, however the real attraction will be the proximity to other national retailers located nearby. This will ultimately underpin the longevity of the investment through a critical mass of trade.”
The offering comes off the back of the recent sale of Bunnings Mackay in Queensland, which was purchased by the Charter Hall Long WALE REIT for a price of approximately $28.5 million - reflecting a yield of 5.95%. Other recent transactions include the Bunnings in Ballarat Victoria, which transacted for a price of $14.46 million - reflecting a yield of 6%.
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