CBRE Victorian Retail Investments has been exclusively appointed to handle the sale of the Colac Bunnings Warehouse in Western Victoria.
Located at 130-138 Bromfield Street – in the commercial heart of the Colac township - the 6,500sqm property is secured by a 10-year net lease to Bunnings.
Bunnings has been operating from the site for two years, with the property providing immediate proximity to Woolworths, Aldi and a soon to be developed Coles complex.
CBRE’s Justin Dowers, Mark Wizel, Joseph Du Rieu and Kevin Tong are selling the property on behalf of a local syndicate who have owned the property since developing the site in 2011.
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%.
Located at 130-138 Bromfield Street – in the commercial heart of the Colac township - the 6,500sqm property is secured by a 10-year net lease to Bunnings.
Bunnings has been operating from the site for two years, with the property providing immediate proximity to Woolworths, Aldi and a soon to be developed Coles complex.
CBRE’s Justin Dowers, Mark Wizel, Joseph Du Rieu and Kevin Tong are selling the property on behalf of a local syndicate who have owned the property since developing the site in 2011.
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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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
