Bunnings Shellharbour sells to private investor for $40.6m
Bunnings Shellharbour has become one of the most expensive properties in the area, selling for a whopping $40.6m to a private investor with an over 50 year lease.
The property was offloaded by Australian property development and funds management company Charter Hall and currently has a lease with Bunnings until 2030, with existing leasing options all the way until 2078.
It is the biggest Bunnings sale in NSW in three years and the largest nationally since early 2023.
The sale was facilitated by Costi Cohen commercial buyers agents Tas Costi, Jacky He and Zach Harckans and selling agent James Douglas of CBRE.
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Bunnings Shellharbour sold for $40.6m to a private investor. Picture: Andrew Henshaw
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Mr Costi said net yield for this Bunnings was significantly more than previous Bunnings sales.
“This investor was looking for a high-quality passive investment. This Bunnings is one of the best covenants and tenants in the country,” Mr Costi said.
The majority of Bunnings transactions in the last five years were ranging between 3.5-4.5 per cent Net Yields, according to Mr Costi. The Shellharbour Bunnings has a 5.02 per cent net yield.
“There is a lot of land for residential in this area, but not as much for industrial,” he said.
“Long term security, really strong growth and in terms of the location, it has got all the growth that’s happening in that immediate area with 19,500 homes that are being planned to be developed in West Dapto,” he said.
Bunnings Shellharbour sits on 32,000 sqm of land in a high growth area.
The large landholding of 32,000 sqm was another big selling point.
“It’s a rare sale, there’s not many investors that would be able to afford something like this you need a lot of cash, but if you’ve got the funds to have a great tenant like Bunnings it’s a great opportunity.”
