Bunnings hits market with $1.42m yearly return
Bunnings Taree hits the market. Picture: Andrew Henshaw
Bunnings Taree is up for sale offering investors a staggering return of $1.42m per year and a new 10-year lease with options extending until 2082.
It is also one of only two full-line Bunnings Warehouses within the rapidly growing New South Wales MidCoast region, which spans from Newcastle to Port Macquarie.
JLL’s David Mahood, Sebastian Fahey, and Nick Willis are managing the sale on behalf of Charter Hall through an expressions of interest campaign.
JLL agents would not comment on the price guide of the Taree site, however Charter Hall recently offloaded another Bunnings in Shellharbour, sold to a private investor for $40.6m with a net yield of 5.02 per cent.
Prior to that, Bunnings Collingwood sold in July 2023 for $63.5m to a “super-wealthy Melbourne-based investor,” with a 5 per cent yield and annual $4.115m annual net income.
Mr Mahood said private investors had dominated the retail sector in 2024, accounting for nearly half of all transactions and more than double any other capital source.
“These investors are predominantly attracted to properties with highly defensive covenants, especially those backed by ASX-listed corporations,” he said.
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Situated on a substantial 38,210 sqm landholding in Taree’s northern corridor, the asset is projected to reach 121,000 residents by 2046, according to JLL.
The nearest full-line Bunnings is over 40km away.
Built in 2009, the 13,664 sqm Bunnings Warehouse features a main warehouse, nursery, and timber trade area, supported by 344 car bays.
“(Bunnings Taree) provides investors with a highly defensive net income of $1.42 million per annum, complemented by fixed annual base rent reviews,” Mr Mahood said.
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Mr Fahey emphasised the strategic location and growth potential.
“The MidCoast region benefits from its proximity to the Hunter Region and Newcastle CBD, Australia’s largest regional economy with a gross regional product of $73.3 billion,” he said.
“This positioning enhances Taree’s economic potential and connectivity to major markets, including the Port of Newcastle.
“Taree’s economy is further bolstered by a thriving healthcare sector, anchored by Manning Base Hospital, and serves as a primary hub for tertiary education.”
Major infrastructure projects like the Northern Gateway Transport Hub and a $100 million redevelopment of Manning Base Hospital are also expected to further support the region’s growth trajectory, he added.
Bunnings transaction volumes have dramatically declined from a peak of $644 million in 2020 to just $65 million in 2024, according to Mr Mahood, labelling it a “rare opportunity.”
“This scarcity has further intensified investor interest in prime Bunnings properties.”
