Last chance to buy a Bunnings this year
Investors will have their last chance to secure a Bunnings freehold in 2019 when one of the hardware chain’s high-performing regional stores is auctioned next month.
The Bunnings-leased property at Horsham in northwestern Victoria will be offered at Burgess Rawson’s Portfolio Auction event on December 11, with price expectations of around $9.25 million.
With Bunnings investments becoming increasingly rare on the commercial property market, competition for the blue-chip asset is expected to be fierce.
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Occupying a prime 9581sqm site with three street frontages in the CBD, the 7465sqm property at 24-38 Wilson St presents exceptionally well, having been recently upgraded and extended.
Currently returning $560,766 per annum plus GST, the property is secured on a 12-year lease to 2025, with a further four five-year options to 2045.
And in a boon for potential buyers, the lease includes 3% annual increases, with Bunnings to pay all outgoings, including land tax.
Burgess Rawson director Shaun Venables says the leasing structure is one of the best he has seen on a Bunnings-tenanted property.
“3% increases are very rare, and no longer offered on a Bunnings. The best you’ll generally see is 2.5%, so to have 3% rental growth on this one is a real bonus,” Venables says.
“And with Bunnings paying all outgoings and land tax under a net lease structure, the lease is as landlord-friendly as you’ll find.”
Venables says the property’s location in Horsham adds to its appeal, with little competition in a broad trade catchment.
“Horsham is the capital of northwestern Victoria, midway between Adelaide and Melbourne, and it’s a really captive catchment, endorsed by the fact that all of the major supermarkets are represented,” he says.
“Coles, Woolworths, Aldi and Kmart are all within 500 metres of the site.”
Precious few Bunnings have been offered for sale in 2019, with Burgess Rawson successfully auctioning a property at Kempsey in NSW for $5.14 million in June, while another at Kingaroy in Queensland sold through expressions of interest just weeks earlier for more than $14 million.
The Horsham Bunnings’ freehold will be auctioned at Burgess Rawson’s final Portfolio Auction of 2019, to be held in Crown Casino’s River Room at 11am on Wednesday, December 11.
